Imaginary Savings Used to Justify $26-Billion in Spending

Ernest Istook / August 04, 2010

Using the classic Washington fib that “It’s paid for,” Congress is spending an extra $26-billion to bail out state governments (who already got the lions’ share of last year’s failed $787-billion “stimulus” bill).

The House will rush back from a six-week recess to spend the money next week—an urgency that they instead should show to fix the economy by removing the twin threats of Jan. 1 tax hikes plus a bundle of job-killing regulations.

The $26-billion won’t fix the jobs crisis in the private sector, but instead gives job security for public employees, especially teachers and others who are heavily unionized.  And it gives states extra money for their Medicaid programs. (more…)