House GOP leader says no federal bailout of states

[The Northerner]

WASHINGTON (AP) — A top House Republican said on Monday that the federal government will not bail out fiscally ailing states and said he opposes a proposal that Congress allow states to declare bankruptcy as a way of handling their growing piles of debt.

Though there has been little discussion of Washington bailing out states, some congressional Republicans and conservative groups are suggesting that states be allowed to seek protection in federal bankruptcy court, which they are currently barred from doing. Public employee unions, liberal groups and some lawmakers of both parties oppose the bankruptcy idea.

House Majority Leader Eric Cantor, R-Va., told reporters on Monday that he believes states already have the tools they need to ease crushing budget deficits since they can cut spending, raise taxes and pressure public employee unions to renegotiate pension benefits. As a result, he said, he opposes letting states declare bankruptcy because he said they don't need that power.

While some conservatives say that allowing states to declare bankruptcy would stave off a federal bailout of states, Cantor said he disagreed. "There will be no bailout of states," he said. "The states can deal with this, and have been able to do so on their own."

Supporters of allowing states to declare bankruptcy say it is the only way for states to dig themselves out of debt. Opponents say the idea will drive up borrowing rates for states and make it easier for states to cut government workers' pension benefits, even though those benefits are just a minor cause of states' budget problems.

Source: http://www.google.com/hostednews/ap/article/ALeqM5hf98Gs-0KILGmW-RE-cF1x8uU1ew?docId=15e329f9cb324f1597d35018b4e46174

[Rosa Luxemburg]

1. Cantor will want to fire teachers

[truedelphi]

2. The Obama government has had the ability to help states in trouble since

Inauguration Day of 2009.

Instead, Geithner has flatly refused to help any of the states.
However, the scheme to rip off the middle class and the poor yet again (That I call "The Tax Cuts for The Rich Act of December 2010") appoints some 120 BILLION dollars to go to the IRS to help the agency make sure that the mandated health insurance is being bought to us mandated citizens.

Doesn't the Beltway crowd realize how many states would have benefited from 120 Billion bucks?

Geithenr says money is not available to the states - he refused Ahnold's request for a loan of twenty billion for the citizens of California. (A loan! Not even a give away, a loan!) But we always have money for Wars, for Rich People's Bottom Line, and for things like the IRS, but never to actually help the middle class.

[hfojvt]

3. be nice if Obama would push for it (a partial bailout)

or, failing that if Harry Reid/Nancy Pelosi would.

[bluestateguy]

4. I would only support a bailout of states if strict conditions were attached

I don't trust many of the states that would just take the money and spend it all on tax cuts and prisons.