Via Matt Yglesias at Slate, this map–originally posted at The Economist last year– shows fiscal transfers from wealthier states to poorer ones by means of taxes collected by the federal government and then distributed to states as Medicaid, unemployment insurance, and so on.
As Yglesias points out many of the states that get more back than they put in in taxes tend to be more conservative, but that’s not always the case. States that are lower in population also pay less in taxes and get more back. For example, North Dakota and Iowa are experiencing a great deal of growth and prosperity at present, but they still get more held from taxpayers in more populous states like New York, Connecticut, and Massachusetts.
Yglesias points out that the situation here in the U.S. is different from the Eurozone:
Two key points I would make about this in relation to the eurozone are that these transfers are both really big and extremely persistent. Mississippi and Alabama have lagged behind the rest of the nation in economic development for a very long time and I see no particular reason to believe they’ll ever catch up.
Making the obvious mental leap, Derek Thompson writes at The Atlantic:
Unlike the United States, the euro zone collects a teensy share of total taxes at the EU level and has no legacy of permanent fiscal transfers from the richer countries, like Germany, to the poorer countries, like Greece.
Would wealthy, populous states like New York and Texas be better off establishing their own currencies, Thompson asks?
On their own, they could spend a lot more. Today, the states can’t borrow money. But on their own, the richer ones might be able to borrow cheaply enough to eventually run persistent small deficits to make up for whatever infrastructure, education, and per capita health care spending they were receiving from Washington. Once they got in on NAFTA, they could trade freely with the other states as the dollar zone disintegrating into history.
Perhaps the northeastern states should secede and form their own union. Quite a prosperous country could be made up of MN, IL, IN, OH, PA, NY, MA, NH, ME, VT, DE, RI, and CT. Only IN, VT, and ME would be on the poor side. Other areas of the country could form their own coalitions.
Perhaps a more interesting question is whether the possibility of this happening might stimulate enough concern among conservatives in Congress for them to stop fooling around with the wars on women and science and start doing something about the real problems we’re facing in this country?
Desperate times call for desperate measures.
Frankly, I’ll be very glad when this holiday season is over. It goes on way too long. This year I saw Christmas stuff at Halloween! At least I don’t get depressed at this time of year anymore, and I’m very happy for people who enjoy the celebration. I’ll probably have a nice time at Christmas dinner, but why do we need a two month build-up? Please forgive my grumbling…. I’ll get to the news, such as it is.
MSNBC’s First Read reports that Boehner and his merry men in the House “punted” on the payroll tax cut bill last night; supposedly they’ll vote on it today.
House Republican leaders emerged following a meeting with rank-and-file members to say that the House would take up their votes on Tuesday. Lawmakers had planned to vote around 6:30 p.m. ET on Monday evening, but the 6 p.m. meeting of GOP lawmakers lasted longer than expected, over two hours.
Majority Leader Eric Cantor (R-VA) said that the House Rules Committee, which sets the parameters for votes in the House, would meet tonight to set the stage for tomorrow’s series of votes. Those Tuesday votes would include a measure to reject the Senate’s two month extension, and instead instruct lawmakers to meet in a conference — the formal process of resolving differences with legislation in the Senate.
“Our members do not want to just punt and do a two-month, short-term fix where we have to come back and do this again,” House Speaker John Boehner (R-OH) told reporters at the Capitol.
House Republicans prefer legislation to extend the expiring tax cut by a whole year, and produced legislation to that effect. But Democrats in the Senate rejected that proposal because of some of the cuts used to offset the cost of the bill, which also includes an extension of unemployment insurance.
Meanwhile, Jake Tapper is reporting that the two month extension passed by the Senate and backed by President Obama cannot be implemented in it’s current form.
Officials from the policy-neutral National Payroll Reporting Consortium, Inc. have expressed concern to members of Congress that the two-month payroll tax holiday passed by the Senate and supported by President Obama cannot be implemented properly.
Pete Isberg, president of the NPRC today wrote to the key leaders of the relevant committees of the House and Senate, telling them that “insufficient lead time” to implement the complicated change mandated by the legislation means the two-month payroll tax holiday “could create substantial problems, confusion and costs affecting a significant percentage of U.S. employers and employees.”
ABC News obtained a copy of the letter, which can be read HERE. Isberg agreed that it would be fair to characterize his letter as saying that the two-month payroll tax holiday cannot be implemented properly.
Why on earth can’t those morons on Capital Hill just extend the unemployment insurance for Pete’s sake? The Congressional Republicans make Scrooge look like a piker when it comes to mean-spiritedness. Aren’t most of them supposed to be “Christians?” Good grief!
Please, can’t someone force Boehner and Cantor to visit some homeless shelters and perhaps some parks and street corners in Washington D.C., where no doubt some of the 1.6 million homeless children in the U.S. reside? One out of every 45 kids in this country were homeless last year! And these evil bastards are trying to make this horrendous situation worse!
A huge winter storm was pounding the Southwest and the lower Great Plains States last night.
Interstates and highways were shut down Monday night as a large winter weather system brought heavy snow, fierce winds and ice to at least five states in the West and Midwest.
There were blizzard conditions in parts of western Kansas and southeast Colorado, with visibility of less than a quarter-mile, said Ariel Cohen, a meteorologist with the National Weather Service’s Storm Prediction Center in Norman, Oklahoma.
A blizzard warning was in effect for those areas along with northeastern New Mexico, the northwest Texas panhandle and the Oklahoma panhandle, he said. The severe weather was starting to affect Missouri late Monday, with a winter weather advisory in effect for the northwest corner of the state.
Roads were closed in Texas and New Mexico because of blizzard conditions. Wow, some of those people rarely see snow. If you live in the storm area, please stay inside and don’t drive!
The New York Times calls handling of Kim Jong Il’s death “an extensive intelligence failure.”
Kim Jong-il, the enigmatic North Korean leader, died on a train at 8:30 a.m. Saturday in his country. Forty-eight hours later, officials in South Korea still did not know anything about it — to say nothing of Washington, where the State Department acknowledged “press reporting” of Mr. Kim’s death well after North Korean state media had already announced it.
For South Korean and American intelligence services to have failed to pick up any clues to this momentous development — panicked phone calls between government officials, say, or soldiers massing around Mr. Kim’s train — attests to the secretive nature of North Korea, a country not only at odds with most of the world but also sealed off from it in a way that defies spies or satellites.
Asian and American intelligence services have failed before to pick up significant developments in North Korea. Pyongyang built a sprawling plant to enrich uranium that went undetected for about a year and a half until North Korean officials showed it off in late 2010 to an American nuclear scientist. The North also helped build a complete nuclear reactor in Syria without tipping off Western intelligence.
As the United States and its allies confront a perilous leadership transition in North Korea — a failed state with nuclear weapons — the closed nature of the country will greatly complicate their calculations. With little information about Mr. Kim’s son and successor, Kim Jong-un, and even less insight into the palace intrigue in Pyongyang, the North’s capital, much of their response will necessarily be guesswork.
Not good. Maybe the CIA and NSA should concentrate on actual intelligence gathering rather than bugging Americans phone calls and reading their e-mails and tweets and Facebook postings.
Did you notice that Jeb Bush had an op-ed in the Wall Street Journal yesterday? With Gingrich tanking and Ron Paul rising in Iowa, are the Republicans getting ready to push another Bush for president? Charlie Pierce of Esquire thinks it looks that way:
He was supposed to be the savvy one, the presidential one, not that dolt of a brother who ducked his National Guard duty, ran several businesses into the dust of west Texas, got drunk and challenged the Auld Fella to a fistfight, and kept driving his car into the bushes. But the dolt got Daddy’s money and Daddy’s lawyers behind him and got installed as president, where he did his utmost to lodge the family brand somewhere between those enjoyed by Corvair and leprosy. Meanwhile, the golden child got to be governor of Florida for a while longer.
And now, in the widening gyre, slouching toward Manchester to be born, our moment of… Jeb (!)
Make no mistake. You don’t write an op-ed for the Wall Street Journal at this point in the Republican primary process unless somebody, somewhere wants to make people think you’re an legitimate option. You certainly don’t write one as stuffed full of free-market banana-oil as this one unless somebody, somewhere wants to raise enough money to make the world think you’re a legitimate option. There was enough Jeb (!) buzz over the weekend that it’s becoming plain that some very important someone’s have looked over the current Republican field and decided that, by god, it’s just bad enough that there’s room in there to bring back the most discredited surname in American politics. The slogan writes itself:
“Jeb! This time, let’s try the smart one.”
I don’t know. I don’t think any of the Bushes are all that bright. They’re way too inbred. Maybe another Bush presidency is what the Mayans predicted as the world-ending event?
I’ll end with an upbeat story. Remember Jessica Lynch? She just graduated from college.
I don’t really like to talk about what it took to get here. I don’t want anyone to feel sorry for me, or to think I don’t know how fortunate I am. Everyone else in my vehicle in Iraq was killed. My best friend, Lori Piestewa, died as a prisoner of war. I’m still here.
I’m also incredibly proud of this moment. I always dreamed of becoming a teacher, ever since my own kindergarten teacher took me under her wing when I was frightened on the first day of school. We are still in touch today. That’s the kind of teacher I want to be.
In the eight years since my captivity, I’ve had 21 surgeries. I have metal parts in my spine, a rod in my right arm, and metal in my left femur and fibula. My right foot is held together by screws, plates, rods, and pins. I have no feeling in my left leg from the knee down, and I wear a brace every day. Sometimes I’ll get a flash of pain, or feel upset because I can’t run, and then I’ll remind myself: I’m alive. I’m here. Take some ibuprofen.
Go read the whole thing. It’s not very long, and it’s a nice, inspirational story.
Now what are you reading and blogging about today?