President Obama has bet the economy on his program to grow the government and finance it with a more progressive tax system. It’s hard to miss the irony that he’s pitching this change in Washington even as the same governance model is imploding in three of the largest American states where it has been dominant for years — California, New Jersey and New York.
A decade ago all three states were among America’s most prosperous. California was the unrivaled technology center of the globe. New York was its financial capital. New Jersey is the third wealthiest state in the nation after Connecticut and Massachusetts. All three are now suffering from devastating budget deficits as the bills for years of tax-and-spend governance come due.
I’m glad this is in “opinion.” There are plenty of other reasons to explain the challenges the WSJ mentions. These three states receive far less in federal income than they give.
The problem with that theory is that the calculation you refer to doesn’t distinguish between the federal government’s direct subsidies transferred to the state budget and other remissions such as payments to military personnel, federal workers, etc. Under no circumstance would these remissions directly impact the states’ budgets.
Futhermore, CA, NY and NJ once were able to balance their budgets with the same supposed lack of federal funds. So why are they drowning in red ink now?
Why indeed? At least in the case of California, can you say open borders …. ?
Furthermore, if one state isn’t going to subsidize another via the round-robin purse-snatching that is the federal government, what’s the point of sending the swag to DC in the first place?
But the Annointed One knows he is right….
Hatred of Bush is not a reason to destroy America.
I found the collection of statistics and facts in this piece to be rather informative, and justifying considerable investigation and analysis.
Just a bye-the-bye…CT is facing an eight billion dollar deficit over the next two years and leads the nation in sending the most to Uncle Sam and getting the least return.
We have a RINO governor and have had a democrat controlled legislature for decades. The liberals are ruining our state.