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Taxpayers in these BLUE states are about to be destroyed thanks to massive debt

(National SentinelOther People’s Money: The Left-wing establishment press has found a new Democratic darling — avowed socialist Alexandria Ocasio-Cortez, who’s running for Congress in New York City — but to be honest, the party has been trending that way for years.

The evidence can be found in the way blue states have been run — into the ground, financially speaking.

Several of them are facing massive debt thanks to mostly over-promised pensions approved by Democrats that have drained state bank accounts and are set to saddle taxpayers living in them with hundreds of billions of dollars in new taxes.

Fox Business reported this week:



Connecticut may be the richest state in the country, on a per capita basis, but it’s racked up a sizable debt worth more than $53 billion – and it could be taxpayers who are forced to bail out the Constitution State, according to the former governor of Indiana.

“Someone’s going to the barbershop,” Mitch Daniels, a Republican, said during an interview with FOX Business’ Stuart Varney on Thursday. “The first will be the taxpayers, already beleaguered in some of these states.”

And Connecticut isn’t the only state struggling with a debt crisis: California, Illinois, New Jersey and New York are unable to make pension payments to retired government workers.

survival frog

In Illinois, for instance, vendors wait months to be paid by a government that’s $30 billion in debt, and one whose bonds are just one notch above junk bond status, according to Daniels. New York’s more than $356 billion in debt; New Jersey more than $104 billion; and California more than $428 billion.

All blue states run by Democrats.

“They’re just one of a number of states, including some of the biggest states, that are in deep water,” Daniels told Fox Business. “I think it is irretrievable. Pensions is the core of it. It’s not the only fiscal recklessness that they have practiced, but in some of those cases, the bill are genuinely unpayable.”

That means Democrats still running those states will do what Democrats always do when they over-promise and overspend: Raise taxes.

Only, Daniels said there’s not much chance of raising them enough to pay off what is owed because you can only tax people so much.

“There may be a way in some states to have a reset of the pension obligations, although in some places, they’ve actually been constitutionally protected,” Daniels added.

The debt bombs are about to explode in liberal, Democrat-run states. If you’re in one of them, it’s time to start looking for a way out.


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2 Comments on Taxpayers in these BLUE states are about to be destroyed thanks to massive debt

  1. Recently I had to pay $93 to transfer the title of a 35 year-old motorcycle, and I knew in the moment that maybe ten dollars of that went to the five minutes of routine bureaucratic paper-shuffling and the rest went to the public employee retirement fund. I was really being extorted for something no one voted for, and the only defense was owning, buying, and selling fewer vehicles. So in one more little way, government employee greed is helping to shut down the economy.

  2. Public employee pensions have been overly generous for decades. Many blame the fact that almost all of them have been defined benefit plans rather than 401Ks. But the real reason so many are facing bankruptcy is because they promised too high a payment, many offering 40-80% of final pay, along with generous Colas.

    While small Colas are appropriate for those living on a fixed income, many public employees are able to retire after only 20 years of service, with plenty of work years left in their lives. Colas should not begin until age 65. Also, no pension should offer more than 1/3rd of your last few years income.

    But these pensions have been promised and that should not be taken away or altered except for new hires. The more pressing problem with states facing bankruptcy is *current* employee pay schedules and colas. There is no reason public employees should get automatic raises every year just for showing up. It’s difficult enough for a private business to forecast what it’s revenue will be 3-4 years down the road. but at least they have ways to make more money with new sales efforts, new products, opening up new territories, finding production economies to increase margins, etc, etc. Cities, states, and towns have only 2 sources of revenue – taxes and fees, and the only way to pay for public employee pay raises is to increase these for taxpayers, who may not be getting raises in their own jobs.

    A new method of determining raises for public employees, based primarily on increases in revenue over what was budgeted, has to be developed before all municipalities get into trouble..

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