Relevant:
- States Take Aim at Pension Costs; Public Employee Unions on the Defensive
- Forty-four of 50 US states worsen inequality with ‘upside-down' taxes
- U.S. States' Credit Rating Outlook Turns Negative, Moody's Says
- Tennessee: Taxpayers to Makeup For Pension Losses
- Move over, Puerto Rico. Illinois, New Jersey and other states face municipal bond woes, too
2012-05-01 — nakedcapitalism.com
Wonder why states are broke? It isn't just the global financial crisis induced knock-on effects of a plunge in tax receipts and a rise in social safety net payments. Nor is it just pension fund time bombs (note that despite the press hysteria, the problem is unmanageable only in a comparatively small number of states, with New Jersey way out in front, thanks to 15 years of the state stealing from the workers' kitty, plus a decision to take big risk at exactly the wrong moment, in 2007, which resulted in large losses). A significant unrecognized culprit is companies managing to divert tax revenue from stressed states to their coffers. The device, in this case, is demanding the right to keep state income taxes withheld from employee paychecks
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