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I can't see well-run states say "Sure, we'll subject our residents to more taxes to help Illinois, even though they've screwed up for 50 years". Penned by members of the Wisconsin state legislature, to Wisconsin's 2 US Senators:


“These responses to the disease have led to drastic changes in budget projections for states around the country: sales tax collections are down, income tax deadlines have been extended, unemployment rates are at historic levels and more businesses are permanently closing every day,” the letter said.

“That being said, Wisconsin has spent eight years making the tough choices to get our fiscal house in order,” the letter said. “We do know that our neighbors to the south have spent decades spending and borrowing recklessly.”

“After years of failing to fund their overly generous pension system, Illinois is already asking for the federal government to bail them out of these series of poor financial decisions,” the letter said.

“Wisconsin taxpayers should not be responsible for funding bailouts for irresponsible states across the country like Illinois, New York and California. Please stand with Wisconsin taxpayers and reject the multi-trillion dollar bailouts being considered by Congress,” it said.


https://herald-review.com/news/state-and-regional/wisconsin-lawmakers-urge-no-fed-bailout-money-for-illinois/article_6dae6864-e3db-5414-a944-b78cf768b5f5.html

This is some tremendous cheap heat. In parts accurate, but also some high end cheap heat. 

You want your Federal taxes to go up, to help Illinois further mismanage taxpayer dollars? Nothing is going to change here. There are veto-proof majorities in both sections of the capitol, and they will not open up the state constitution to fix the pension problem. They WANT to open it this fall, to change the state's tax plan from flat rate to progressive.

What could go wrong?

It's not really about me wanting it or not. And the letter probably isn't really either. It's a bit of a show to get folks riled. Even if all of Wisconsin's reps shouted in unison, "Illinois shouldn't get help" it almost assuredly wouldn't have mattered.

But nothing can get Wisconsinites nodding more fervently than saying "Eff the FIBS" in code, and then taking shots at a few other big states. One might even call it a manner of virtue signaling. And all from a state that gets more from the federal government than it pays in (the three states mentioned do not).

In the end, it kinda didn't matter. The article is months old. Both Wisconsin senators voted for it. I can't find if there was an actual tally in the house.

It's a republic, my friend. The States are supposed to have power, and they do. They make their own beds.

All I'm saying is that states which have mismanaged money as severely and for as long as Illinois has should not get bailed out. You in South Carolina did not promise gold-plated pension plans to government employees. You should have to pay for them.

 
That first part is true. And if a great many states don't want to bail out Illinois, it's fine and dandy. 

But a third of a mid-sized state legislature begging its small delegation to crap on its neighbor, not so productive and sorta just silly and petty. Wisconsin produces less than a third of the raw federal income tax revenue as Illinois and the average Illinois resident contributes about 133 percent what a Wisconsin resident does, so this "Wisconsin tax dollars shouldn't go ..." is just flourish and pretend virtue. Someone can advocate against helping Illinois. One party in Wisconsin doing it is just cheap heat. (I'd say the same if Minnesota or Illinois were rabble rousing to not help Wisconsin with federal money after some boondoggle that happened)

In a larger sense, I think pensions are at best vestigial and don't make a ton of sense to me economically with my modest free-market bent. They seem to quagmire governments and companies alike. I get why they once existed. And my state, lets not hold it up as a model for much. I don't know if it's Illinois corrupt, but it holds its own. 

Honest question, because I have not dug in.

Have you dug into the numbers? 

I mean, the contributors are where the most people live and also where big business lives. How much of the Illinois contribution is business? Like, McDonald's, Boeing, Abbott, etc.? They have a ton of employees, and not only do they pay taxes, they pay FICA, etc. Is FICA included? Medicare/aid?

Also, I'd like to know what Federal money means. Florida and Arizona "take" a lot more than they give. 

If part of that is social security, and given the numbers, I suspect it is a part. 

I do not consider FICA to be Federal money. I consider it mine, ours, and yours. 

Because it is.

And, for 20 years, I've paid double for me as an employer of me. I'll never see it. Not even close.

That's the bit that always pisses me off...

California is a really rich state. As a result, we have very high incomes here to address the high cost of living.  As a result, we pay higher federal income taxes (as well as social security and medicare) than most other states, because our incomes are high.

We also have a very high, very urban population so much of our infrastructure is centralized into small geographic areas.

Put the two together, and we give a bunch of money to Washington and don't get the same amount back.

Yet we're at fault when we're funding all the rest of y'all.

I hear ya. It doesn't seem fair.

If it honestly, truly bothers you, then you have the choice to move somewhere cheaper. 

But not Texas.

Thank You For Your Support

I just want to know if the numbers include FICA and corporate taxes. Because if they do, the discussion is over.

I feel like the dollar is going to crash soon.  Like hard.