As a consequence of the $700 Billion bail-out bill, some states are requesting parity with banks and other institutions by seeking loans from the Federal Government. Massachusetts recently received 10.6 billion dollars to shore up its Universal Health Care Plan - 2.1 billion more than intended three years ago when the State negotiated with the Federal Government for a waiver in the income requirements for Medicaid. Now the State is asking for a loan under the guidelines of the new Federal Bail Out program . Massachusetts budget shortfall can be attributed to its Universal Health Care Plan, and insufficient tax revenues to cover the ever increasing costs of entitlement programs revered in the Bay State.
Massachusetts residents and business enjoy one of the highest tax rates in the nation, so why the discrepancy? Massachusetts has the 4th highest corporate taxes in the country – the result: businesses have gone over the border to neighboring Rhode Island; where corporate taxes were lowered. The income tax, sales tax and other fees levied on individual Massachusetts residents has resulted in an exodus of residents to neighboring states as well - and a severe decline in projected population growth has affected the state’s budget as well as a loss in House Seats.
The Lesson in all of this excessive taxation is as follows: Tax businesses and citizens at the highest rate possible and they will leave, reducing income needed to cover budgets that are stuffed with giveaway and pork programs. (Granted some of these giveaways are essential to the well-being of state residents.) The lesson of this tax bailout is that states that have exceeded their budgets, like California and Massachusetts, expect to take advantage of the Bail Out that was so important to Nancy Pelosi and company. Although a bi-partisan bill, supported by both President Bush, Harry Reid, Nancy Pelosi and both presidential candidates, it did not settle well with constituents and or certain members of Congress who saw the writing on the wall and Wall Street, the intended recipient - lost points after the bill was singed into law.
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So here we are in America in 2008 ... we have mostly free prescription drugs for the elderly ... we have nationalized a big chunk of local and public education ... we are eventually going to grant 12 to 20 million illegal aliens full citizenship ... and on and on and on and on and on ... Now we are in the process of nationalizing the financial and housing markets in ways that we can't even know right now ... and all of this, we are told (cough cough, chuckle chuckle), will save America.
The dirty little secret, that nobody wants to talk about ... what got us into this problem ... loaning money to minorities and poor people who could not pay it back. This was Marxist social engineering ... this was affirmative action via mortgage. It's clear-cut ... it's just that conservatives don't dare say it.
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