Getting States Off the Dole
The Foundry: What do the Bridge to Nowhere, the highway bill, the “subsidies for millionaires” farm bill and our crippling entitlement crisis have in common? They are all examples of the corrupt governance that is guaranteed to happen when the federal government takes over responsibilities best left to the states. In each of these cases (transportation funding, agriculture policy and health care), massive federal government spending and aid to states in the form of matching grants have all but drowned out the ability of state and local governments to set their own priorities without approval from Washington.Federal aid to states has been practiced for more than 100 years, but two distinct periods witnessed an explosion in the practice. In 1960, the federal government sent $48 billion to states. By the time President Lyndon B. Johnson’s Great Society had been implemented, that number nearly tripled to $129 billion. . . . federal spending on aid to states has again exploded from $286 billion in 2000 to $449 billion in 2007. . . . Every year about $500 billion flows into Washington from the states, is divvied up by lobbyists and congressional power brokers, and is then returned to states. It is an extremely inefficient funding system that serves no economic or civic purpose . . . [Read More]
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Posted by Bill Smith at 3:55 PM - Post Link
2 Comments:
The process of siphoning off money from the states by the Federal bureaucracy and then deciding on which states and programs should receive money from these funds is nothing more than a State tax by the Federal Government. It eventually because a source of Pork as elected legislatures were forced to fight for their share back for their state.
The result was waist, abuse and finally more control by the Federal Government. $500 billion flows from the states to the Federal Government while only $449 billion is retuned (2007 figure). The Federal government handling charge (or losses) is almost 10%: $51 billion. This is $51,000,0000,000.
Should we now discuss the Federal cut from tariffs, federal taxes, estate taxes, gasoline taxes, etc., etc. etc.? Not to mention the missing social security funds.
One person has said, "McCain is surely not the answer, neither is the Republican Party." I must reply, "neither is the Democrat Party, Barack Obama or Hillary Clinton." However, one of these three will be the next President of the United States. Since the three choices are not equal in their threat to the taxpayers, the States or to Federalism, I would have to opt for John McCain over Obama or Clinton. At least Sen. McCain has a record of NOT seeking earmarks for his own constituents.
About two years ago, I wrote to about 10 congressmen who were members of the U.S. Senate or House Budget Committee, and I asked them to eliminate spending to state and local governments. I said that, much of the tax money that is sent to Washington, DC, is later returned to the same places from which the money came. I asked them to end that spending and pass a large tax rate cut, since the federal government would need less money. If they did that, each state and local government could easily change its tax rates, to ensure that they received enough money.
None of those congressmen responded.
Comment also cross posted for same post on Grizzly Goundswell
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