Latest Bailout Paid for Only in Fantasyland

Curtis Dubay / August 12, 2010

The House of Representatives rushed back to Washington yesterday in the middle of their six-week vacation to pass yet another bailout. This latest one, $26 billion in total, temporarily saves state governments that have overspent for years from fixing their chronic budget problems.

The newest bailout spends $10 billion for education funding in the states. This money is on top of the $100 billion in education funding the states got from the stimulus. The remaining $16 billion will bailout states’ bankrupt Medicaid programs.

Claims that this newest round of bailouts is completely “paid for” are true only in a fantasy world. Tax hikes on international businesses offset part of the spending. Congress raised taxes on these important job creators by $10 billion over 10 years to partially offset the price of their profligacy. Despite assertions to the contrary, raising taxes on these businesses will drive more jobs overseas and make it harder for United States businesses to compete in the competitive global marketplace. (more…)