When Biden passed his ruinous $1.9 trillion blue-state bailout “stimulus” package – we urged Republican governors to use the funds to stimulate their local economies by cutting taxes. Thankfully, more than 20 GOP governors, including Florida’s Ron DeSantis, took our advice.
We were and still are ADAMANTLY against the federal government ever giving states money – after all, the feds can only give money to states by taking it from them in the first place. But if Congress was going to send the states money, best to send the dollars back to the people in tax cuts rather than to add to bureaucracies.
A front-page Washington Post story sneeringly derides the tax-cutters as rogue states “defying the Biden Administration” and the ban Congress illegally slapped on states to use stimulus money to reduce taxes.
“The moves have threatened to siphon off aid that might otherwise help states fight the pandemic, shore up their local economies or prepare for a potential recession,” is the Post‘s conclusion.
But in reality, the opposite turned out to be true. It is the red states that cut taxes that are in far better economic condition today than the blue states that spent the money on welfare and other government handouts. (See the chart in the item above.)
The Post mentions that 21 states challenged the prohibition on tax cuts and confesses that “in nearly every case, these legal efforts have prevailed.”
That’s because courts have found the Biden rule was a clear violation of the 9th and 10th Amendments – an unconstitutional ban on states exercising their taxing powers.
Congrats to the many Republican governors and state attorney generals who did the right thing economically and constitutionally.