States and Federal money

Mitch McConnell suggests that states go bankrupt rather than looking for money from the Federal government, despite the latter’s ability to borrow at negative interest rates and the former’s legal requirement to maintain balanced budgets. I have a counter-suggestion: let states stop making their federal tax payments. If the Feds won’t fund the states, then let the states stop funding the Feds. States can use that money to fund essential services instead.

McConnell and others talk about “borrowing from future generations”. How about we just reverse those tax cuts the Feds have instigated over the last 20 years, and put that money to work? Progressives need to stop talking about incremental taxes on the very rich and instead talk about how much money we would have taken in for the last couple of decades without the tax cuts, and how much we’ve actually taken in, and suggest bringing things back to the “old” normal. Hey, while we’re at it: let’s make it retroactive. If they need me to pay back the check they sent me in the mid-oughts, I’d be happy to write a check for $200.

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