The Politicians Lied! How States and Bureaucrats are Getting Billions of Dollars They Don’t Need – Creating 8 Horrible Unintended Consequences

Craig Huey Economics, Media, Politics, Taxation 6 Comments

The politicians lied.

The media went along with it.

And the result will be 8 horrible unintended consequences that will hurt your family, your kids, and your grandkids.

Here is what happened.

1. The Reality.

State governments across the U.S. last year saw tax revenue increases, despite the pandemic.

Private companies, especially small businesses, entrepreneurial start-ups and retailers were devastated by the lockdowns. Many lost everything. Many went out of business forever.

But big companies grew bigger…and so did the tax revenue to state governments.

Similar, lower income and middle income people lost their incomes, savings, and many people their livelihood.

But the wealthy got wealthier.

Government policy favored the big companies and the wealthy. And tax revenues went up. This group pays over 80% of all taxes. The states found a historic spike in tax income.

2. The Big Lie.

The lie was the state governments were incurring huge deficits because of the pandemic and only the federal government could financially rescue them from the collapse of the state tax base.

3. The Truth.

States experienced huge surpluses:

  • California surplus: $75 billion
  • New Jersey Surplus: $6.8 billion
  • Arizona surplus: $1 billion
  • Texas surplus: $725 million

4. What then happened is repugnant and wrong.

The politicians kept the lockdowns in place. They kept the rhetoric of doom in place, kept schools shut down…all with the cry that they needed more federal money to stop an economic disaster. Without money, pending doom would destroy everyone.

5. Biden and Congress to the rescue.

With Biden in office and Congress run by the Democrats, never before had there been such a great opportunity to fund government programs and increase the power and size of government.

And they took advantage of it.

Based upon a lie of suffering states in final crisis, they passed the $350 billion state aid in the “American Rescue” plan:

It wasn’t needed.

It didn’t require fiscal responsibility.

It gave a blank check to grow government into more socialism and government programs.

The American Rescue plan was a political trick.

6. And the result? States got billions they don’t need.

  • California received more than $27 billion (with a $72 billion surplus)
  • New Jersey received more than $6 billion (with a $6.8 billion surplus)
  • Arizona received more than $4 billion (with a $1.6 billion surplus)
  • Texas received more than $15 billion (with a $725 million surplus)

This money should have never been given to the states. There wasn’t a need.

And the politicians even wrote into the law a rule that the states cannot use the federal money to give back to the people.

7. And there is more. This money to states is just part of what they and other government agencies will get.

 For example:

  • $130 billion for local government is coming
  • $123 billion for schools is coming
  • $31 billion for city/state-government-run transit agencies

And of course, more federal tax money is hidden in the trillion plus infrastructure bill and other bills before Congress.

8. Who is hurt by this waste and fraud? The pain is not easily seen, but it’s real.

Government programs will be funded with new bureaucracy and new recipients becoming dependent on government – becoming addicted to this new money. These new programs will stay after the federal money runs out. And that will require more taxes to keep funding the programs after the federal state bailout money runs out.

Higher federal taxes are ahead to pay for all of this.

Deficit spending is required, resulting in more inflation.

You’ll see corruption by bureaucrats for waste, inefficiencies, and for mishandling all the money.

Some of the tax money will be going to “community organizations” that are political groups registering, organizing and mobilizing voters for the 2022 election for the Democrat socialists.

Corrupt?

Yes.

Wrong?

Yes.

Damaging?

Yes.

It’s time to stop the tax and spending madness.

It’s time to vote for fiscally responsible candidates who will fight for smaller government, less taxes…and stop the overspending and deficit spending.

What do you think? Let me know at [email protected].

Comments 6

    1. True, CF. But remember, all these political shenanigans are a grab for power and influence all people regardless of their religious belief. If most politicians and most of our people were truly Christian, as most of our founding fathers were, we wouldn’t have this dilemma. Blaming our problems on Satan or the devil has basically no meaning to most of our people because most of them don’t truly believe or hold to the principles of the Christian faith.

  1. It’s time! It’s time! How often have we heard that. It’s been time for a long time. The people are like sheep needing a shepherd (leader) and none is on the horizon. We had one for a short time (President Trump) but the wolves in the Democratic Party were clever, more cunning, and powerful and through deceit and subterfuge managed to overthrow his leadership. The truth is that the time is past for correcting or returning to the principles and governance envisioned and established by our founding fathers. America is on the decline experienced by so many nations of the world and others (or another) is on the rise. It’s a cycle in world history. In our case, the fox is in control of the hen house and has no intention of letting go. I don’t even bother to respond to petitions asking Congress to impose term limits on their members (they want donations too). Whom do these petitioners think they are fooling? Certain naive members of the public (and there are many). All that drivel about government “of the people, by the people, and for the people” is down the tube and in the tank. Do you want to get ahead in the world and enjoy the finer things of life? Become a politician if you think you can pull it off. But first you will have to learn to lie convincingly and develop a huge ego. Go ahead. You can do it if you try.

    1. No matter how bleak the situation is, we must continue to try with all that we have to fight against this evil agenda. True. Had our side of the political party pushed back harder than the adversary, we would not be in such a predicament. This is just another sign that it’s our responsibility. This has become a spiritual war. Our nation is rotting from within so gird your loins.

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