COVID Relief Showers States With 600% Of Lost Tax Revs, Turning Rescue Into Stimulus, by Tyler Durden

It’s a small club and you ain’t in it. Our rulers care a hell of a lot more about their buddies in state governments than they do about you. From Tyler Durden at zerohedge.com:

Joe Biden is giving so much money to states as part of the $1.9 trillion stimulus package that they’re set to receive approximately six times more money than estimated tax revenue shortfalls across the country, according to Bloomberg.

While the package carves out nearly $200 billion for state governments, the cumulative tax revenues which have disappeared in the current fiscal year are just $31 billion. “In other words, that money could make up for that loss and be plowed back into states’ economies, such as their own version of relief checks, infrastructure projects and more, depending on the federal guidelines around the aid.”

In short – states, assuming they don’t squander the funds (who are we kidding?), could play a pivotal role in accelerating the recovery – assuming the money actually stimulates jobs and/or ends up in the hands of consumers. The funds would also allow for the unwinding of various budgetary cuts which began last March, and are responsible for the elimination of more than 1.3 million state and local government jobs – which Bloomberg notes is “nearly twice as many as were lost after the last recession.”

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