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IL's governor pritzker said the same thing, I guess it's a democrat montra for "we mismanaged our State but don't blame us, send us money !"
Dollars made in these states get taken out just like any to the federal government. Business and people from all states give out to the federal government which then disburses that among the states for various programs and projects. However, the ratio of money sent to the federal level and the money spent by the federal government in each state can differ quite a bit as well as the net balance. It’s been customary for a long while that the Northeast and some of the more industrialized Great Lakes states, and in recent years, the West Coast run a “worse” ratio and a larger net deficit than other states and thus effectively help those other states operate and create programs and projects that hopefully help them. That wealth redistribution is in many ways a nice thing to do, but at a certain point, it amounts to a lot diverted that might be veering on too much.
I think if the net deficit that NYS has with the federal government could be halved for a bit, as we have both the largest total deficit and something like the fourth or fifth worst ratio, by directing back just a little bit more to NYS, especially upstate, then we’d be in a pretty good position. Remember, this isn’t just about paying a bit into this or that program for NYS. It’s a lot of additional federal spending and it can be put into things that could have greater knock-on effects.
Our net deficit with the federal government has been in a 30 something billion USD a year kind of window over the last several years at least. Florida’s state has about a net positive of about 40 something billion USD a year. If we can just halve our deficit (and not even go net surplus against the feds like Florida), then that’s in some sense an additional 15 billion dollars of federal funding directed our way a year.
Just to cite one possible thing to spend a portion of additional federal funding on, improving infrastructure such as making improvements to the rail transit linking nearly all the major NYS cities can pay off in creating more intrastate trade and travel. That support could entail doing something like removing grade crossings and improving rail tracks as construction projects so that trains running in NYS are somewhat faster and more reliable for passenger service. What does that do aside from improving intrastate trade and travel? For one thing, it’s a construction project so that’s direct jobs in NYS. That in itself provides additional state tax revenue directly and indirectly and money circulated within the local community as the workers spend. Buying newer and much more efficient trains from that federal funding to run on these improved tracks means generally better service and operational savings every year in maintenance and operation as well as entice people to travel and spend within the state.
Or how about Buffalo’s light rail extension request? That’s a rather modest in view of that deficit we run.
Or how about replacing older, less efficient turbines from some hydroelectric plants and general grid improvements in order to have less energy loss which could also be a boon?
Last edited by OyCrumbler; 06-15-2020 at 11:38 PM..
Dollars made in these states get taken out just like any to the federal government. Business and people from all states give out to the federal government which then disburses that among the states for various programs and projects. However, the ratio of money sent to the federal level and the money spent by the federal government in each state can differ quite a bit as well as the net balance. It’s been customary for a long while that the Northeast and some of the more industrialized Great Lakes states, and in recent years, the West Coast run a “worse” ratio and a larger net deficit than other states and thus effectively help those other states operate and create programs and projects that hopefully help them. That wealth redistribution is in many ways a nice thing to do, but at a certain point, it amounts to a lot diverted that might be veering on too much.
I think if the net deficit that NYS has with the federal government could be halved for a bit, as we have both the largest total deficit and something like the fourth or fifth worst ratio, by directing back just a little bit more to NYS, especially upstate, then we’d be in a pretty good position. Remember, this isn’t just about paying a bit into this or that program for NYS. It’s a lot of additional federal spending and it can be put into things that could have greater knock-on effects.
Our net deficit with the federal government has been in a 30 something billion USD a year kind of window over the last several years at least. Florida’s state has about a net positive of about 40 something billion USD a year. If we can just halve our deficit (and not even go net surplus against the feds like Florida), then that’s in some sense an additional 15 billion dollars of federal funding directed our way a year.
Just to cite one possible thing to spend a portion of additional federal funding on, improving infrastructure such as making improvements to the rail transit linking nearly all the major NYS cities can pay off in creating more intrastate trade and travel. That support could entail doing something like removing grade crossings and improving rail tracks as construction projects so that trains running in NYS are somewhat faster and more reliable for passenger service. What does that do aside from improving intrastate trade and travel? For one thing, it’s a construction project so that’s direct jobs in NYS. That in itself provides additional state tax revenue directly and indirectly and money circulated within the local community as the workers spend. Buying newer and much more efficient trains from that federal funding to run on these improved tracks means generally better service and operational savings every year in maintenance and operation as well as entice people to travel and spend within the state.
Or how about Buffalo’s light rail extension request? That’s a rather modest in view of that deficit we run.
Or how about replacing older, less efficient turbines from some hydroelectric plants and general grid improvements in order to have less energy loss which could also be a boon?
That’s one way to do it, but that comes with other issues and the entire idea was that the wealthier people and states can shoulder a heavier burden in trying to improve the lot of the less wealthy people and states as well as to contribute to the shared federal services. I think better is to have the 16th amendment altered a bit. That was passed because there was an informal agreement of SALT deductions to mitigate the burden, but that is now gone. Instead, I think something like instituting a band on the ratio with higher and lower bounds except in the case of emergencies makes more sense.
The IRS/feds should eliminate the SALT deductions, altogether.
Things would change real quick in this country.
Right, but then they need to put in some bands or limits on the federal revenue to spending ratio. SALT deductions have basically been in place since the 16th amendment and were what was used to corral prosperous northeastern and midwestern states to vote for its passage since the 16th amendment meant a giant welfare stream to southern states. It was and is very imperfect as a model, but removing it without replacement sort of chokes off the golden geese that provide such a large revenue to the rest of the country. Mind you, I'm not against welfare states outright--I'm just saying that the allocations are a bit too much and NYS has areas with issues that really need tackling and aren't trivial.
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I think if the net deficit that NYS has with the federal government could be halved for a bit, as we have both the largest total deficit and something like the fourth or fifth worst ratio, by directing back just a little bit more to NYS, especially upstate, then we’d be in a pretty good position. Remember, this isn’t just about paying a bit into this or that program for NYS. It’s a lot of additional federal spending and it can be put into things that could have greater knock-on effects.
Our net deficit with the federal government has been in a 30 something billion USD a year kind of window over the last several years at least. Florida’s state has about a net positive of about 40 something billion USD a year. If we can just halve our deficit (and not even go net surplus against the feds like Florida), then that’s in some sense an additional 15 billion dollars of federal funding directed our way a year.
</snip>
Upstate is being held together by federal funding, period. Rochester is a prime example, all the billions spread across the academic and manufacturing sectors in Rochester, per annum, is mind-boggling.
NYC and it environs are heavily-dependent upon money changing, making money off of money. Stuff that was illegal decades ago was made legal and regulations were scrapped or eased to make it happen.
Take away the financial sector and maybe some of the solid academia in NYC, and what do you have?
It's all been built on debt and a garbage fiat currency.
Upstate is on life support, has been for 20 years in some areas, 50-60 years in others. The federal government keeps Upstate from falling off a cliff, fiscally and economically, with all the transfers of payments. The State neglects Upstate, the Feds pick up a lot of the slack in that department. That's what a lot of the transfers of payments from the DoD and other federal departments were all about after H. Clinton carpetbagged her way into a senator slot, and she teamed with L. Slaughter and C. Schumer and others to funnel billions of dollars to Upstate for war and LE equipment work.
Sans that, and Rochester, for example, would have blown away in the wind in the last 20 years.
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