E
epan
Guest
It is true that California is in budget gridlock. But if you look at federal revenues from states, vs federal spending in those states, there is a clear pattern. The red states, in general, collect money from the federal government in excess of the revenues they pay into the government. The opposite is true, in general, of the blue states. In some cases, the federal payouts into red states amount to 2.5 times what their GDP would be without federal subsidy. This presents some interesting problems for Republicans who favor a smaller federal government.epan this sounds completely bass-ackwards. The states that are in dire financial straits are the blue states like California which is a disaster, as well as Illinois. They are NOT generating enough revenue to pay their bills, in fact the tax increases voted in, in both states have demonstrated the reality that raising taxes doesn’t mean higher revenue.
The Red States are the ones with lower unemployment, budget surpluses and a lot of people moving IN not out.
I do agree that neither party has the courage to actually tackle reduced government spending. I saw Tom Coburn on Book TV and if there were more like him, there might be hope but most are just running for the hills rather than being painted as heartless for wanting to reduce those oh so effective government programs…
Lisa