It is very much to be regretted that some states have taxed, spent and regulated themselves into a deep economic hole. States such as Illinois, with its reckless taxation, and California, with is business-crushing environmental regulations, now find themselves near the point of outright bankruptcy.
We sympathize with those states’ residents, many of whom would have preferred more sensible policies from their elected officials.
But the House majority leader, Rep. Eric Cantor, R-Va., has properly declared that irresponsible states need not expect Congress to ride to the rescue with taxpayer dollars.
“There will be no bailout of states,” Cantor said. “The states can deal with this and have been able to do so on their own.”
Much of the money from the federal $862 billion so-called “stimulus” has already gone to shore up state budgets. But instead of using the time that money bought them to slash breakneck spending, some states heedlessly continued down their unsustainable path. Illinois, for instance, recently approved a crippling 67 percent increase in its state income tax — when it should have been cutting spending instead.
Now, the “stimulus” funds are winding down, and there is talk in some quarters about bailing out financially troubled states. But that would only guarantee that they will continue their careless spending — and then seek more “help” from Washington.
Wiser states such as Tennessee have faced financial realities, cutting spending where necessary, holding the line on taxes and avoiding undue regulation on job-creating businesses. Residents of those more prudently run states should not now have to send their federal tax dollars to states that refuse to get their own fiscal house in order.
There should be no further federal bailouts of the states.