OCPA column: federal bailout money is a bad trade

A bad trade By Jonathan Small What if someone offered to serve you nothing but dessert every day for a month—but in exchange you had to promise that you would forgo the opportunity to buy health food for the rest of the year? From an economic standpoint, that’s what congressional Democrats have offered Oklahoma with the latest round of federal bailout funding. While Oklahoma government is expected to receive $2.1 billion in bailout funding, that money comes with a catch. One provision of the federal legislation prohibits states from using the money “to either directly or indirectly offset a reduction in the net tax revenue of such State or territory resulting from a change in law, regulation, or administrative interpretation during the covered period that reduces any tax (by providing for a reduction in a rate, a rebate, a deduction, a credit, or otherwise) or delays the imposition of any tax or tax increase.” Put simply, congressional Democrats tried to strip states of their power over state taxes. They offer states a financial sugar high so long as we promise not to do anything that would improve our economic health long term. Read more » by Jamison Faught - March 27, 2021 at 03:23PM

OCPA column: federal bailout money is a bad trade Click the title to read the entire article at Muskogee Politico