There is an article in the Washington Post that draws attention to the long known fact that many state governments are running out of money and cannot pay their obligations to fund vital services within their state. This situation has been building for many years as elected officials hid the true financial facts from the electorate across the country and covered their failure to render sound financial decisions by increasing unsustainable debt upon the backs of their citizens.
Many state union pension plans are under-funded and those states are looking to the federal government for relief, but I do not believe that it is appropriate to bail them out on the backs of increased federal debt that we taxpayers must pay.
Illinois is one the states in the worst condition. Isn’t it interesting that the very same legislators who put the state into this serious financial condition are now major players on Capitol Hill. Take a look at the Washington Post article by hitting this link:
It is beyond my understanding that the politicians who got us into this mess continue to get re-elected, but they do. How can the legislators in Illinois expect the citizens of Illinois to stand still in paying a 75% increase in state income taxes along with the refinancing of $8.5 billion in additional debt? The man on the street just cannot continue to absorb these tax increases and will ultimately have no alternative but to leave states such as Illinois to states where the tax hit is substantially less.
Assuming more and more taxpayers leave states like Illinois, the problem of revenue attainment just gets worse. Thus the only true option is to cut the corruption, waste and excessive number of state workers who are creating the problem to begin with. It will be painful and create greater unemployment, but there is ultimately no other choice.
The alternative to deep cuts in spending is bankruptcy, and that is unacceptable. If strong action does not take place across the country we may face a situation like that experienced recently in Greece, and should that happen the people will take to the streets. God forbid, but the voters and the entitlement crowd, along with irresponsible complicit politicians, are responsible.
It is time for everyone to start telling the truth, like the new Governor of New Jersey has, and many States must take the appropriate fiscal action before the citizens retaliate. The situation is getting just that serious. Wake-up, America!