Absurdity of federal funding system

[Donnachaidh]

http://www.smirkingchimp.com/thread/bruce-ticker/33862/absurdity-of-federal-funding-system

It resembles absurdist theater.

Following the flow of money between cities, states and the federal government has always been an exercise in futility. The states and cities, along with other local governments, have often scrambled for money in ways that are beyond comprehension.

This is an apt time to reassess the funding flow as new developments surface. Most chilling is the bill that 30 states must pay for federal loans to provide unemployment benefits. California owes $9.7 billion; Michigan, $3.7 billion; New York, $3.2 billion; and the lowest, Hawaii, $24 million.

While many states are already cutting services, laying off employees and/or raising taxes, they must decide how to repay $41 billion to the federal government, and federal officials project that the debt could rise to $80 billion. This fall, the states will be charged $1.3 billion in interest.

:snip:

At the same time, Congress bestowed a $114 billion Christmas gift onto the wealthiest two percent of Americans for the next two years for income tax cuts and a reduction in the estate tax.

More at the link --