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Title: US Rep Cantor: No Federal Bailouts For State Governments
Source:
WP
URL Source: http://www.washingtonpost.com/wp-dy ... 011/01/24/AR2011012404148.html
Published: Jan 24, 2011
Author: Associated Press
Post Date: 2011-01-24 15:58:20 by Brian S
Keywords: None
Views: 1631
Comments: 2
WASHINGTON -- A top House Republican says the federal government will not bail out fiscally ailing states. House Majority Leader Eric Cantor of Virginia also says he opposes a proposal to revamp federal laws to let states declare bankruptcy. At a time when most states are running huge budget deficits, some congressional Republicans and conservative groups are suggesting that states be allowed to seek protection in federal bankruptcy court, which they are currently not allowed to do. They are generally opposed by public employee unions, liberal groups and some lawmakers of both parties. Cantor told reporters on Monday that he opposes letting states declare bankruptcy because they can already balance their budgets by cutting spending or raising taxes. For the same reason, he said no federal bailout is needed. A
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#1. To: Brian S (#0)
I'm sure Cantor rather trade a few states to China to get some of that 900 billion in bonds anyway; most of which were sold during the Smirk and Snarl years in their usual, "We will gladly pay you Tuesday for a render the Iraqis into hamburger war today" manner.
If only it were so simple, many states have constitutionally mandated pension programs that they have to fund ahead of all else. Of course allowing them to go bankrupt is in itself a massive challenge that will entail years of court battles. I'm not sure there's any simple solution here.
Since January 3, 2011, Republicans have controlled the power of the purse.
#2. To: Brian S (#0)
Cantor told reporters on Monday that he opposes letting states declare bankruptcy because they can already balance their budgets by cutting spending or raising taxes.
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