Evil is as evil does when it comes to Moscow Mitch’s declaration that the states should go bankrupt rather than have the federal government keep them afloat during the coronavirus pandemic. And it appears that Kentucky Democrats are not going to let the famous Grim Reaper off the hook when it comes to his love of fiscal austerity. Let’s put aside Moscow Mitch’s lies and hypocrisy on fiscal matters for now and focus on what Kentucky Democrats like Governor Andy Beshear have rightly pointed out is the stupidity of McConnell’s position. One big problem: Kentucky’s budget would be at the mercy of a bankruptcy judge.
Don’t believe me? Governor Andy Beshear was our state Attorney General, and this is what he had to say about Mitch’s state bankruptcy idea:
Thursday afternoon, Kentucky Gov. Andy Beshear, also a Democrat, said the next legislative package must include budgetary relief for local and state governments.
He warned that declaring bankruptcy, while technically legal, would allow a judge to draft the state's budget and puts them in a position to potentially raise taxes on everybody across Kentucky.
“This is necessary,” Beshear said of federal aid. “It will cripple our efforts to rebuild if we don't see a package, not only for states, but cities and counties. … It's not just a prop for us, it's for every city and county in Kentucky.”
Now, I can tell you one thing about my beloved state of Kentucky. Nothing will make Kentuckians sit up quicker than if you start to talk about raising their taxes. Kentuckians are as taxaphobic as voters in places like New Hampshire. Probably because politicians in Kentucky have this little problem of 1) raising REGRESSIVE taxes like the state sales tax or 2) giving away tax cuts to large corporations to bring jobs, jobs, jobs. This leads to state needs not being funded properly, especially since Kentuckians don’t think they will get a fair shake when it comes to raising revenue. It’s one of many reasons why we have one of the most underfunded state employee pension systems in the nation.
I have my serious doubts that any Kentuckian would want their economic fate handed over to a bankruptcy judge.
