Sunday, May 17, 2020

Newsome knows the problem

"It's not just the state of California and its governor that is making an announcement along these lines. It's governors all across this country," Newsom said. "Federal government, we need you. These cuts can be negated. They can be dismissed with your support."
Mainly how to get federal money to all states.  He has one choice, do it by population.  But that is not in Nancy's bill, she has spread the money out among a bunch of constituents, not all state governments. So it would appear the Vermont is about eight billion short. I Newsom has any hopre then he needs a clean bill, one that just serves the sates by population.  The boll that Nancy proposed ios far off that mark.

However already screwed that up, so his wish is unlikely to be passed by the Senate until a severe revision. But there is no way to shape a 3 trillion dollar bill down to a managable, and fair spread among the states. Nancy should have done a clean bill with just money for the states. If Vermont gets 2 billion, then Californis get 70 billion, and the total budget for that item becomes 300 billion. Easy to do, but Nancy already combined everything into a catch all and no Newsom is screwed.

And this will all happen under the shadow of the building tax battles, they are not going away.

This is how the demand Godot theory friggs things up, all the time, and the problems never get resolved.  Brad and the bunch will be complaining for the next two years about some demand nonsense, and we will end up right back in the sinkhole.

Newsom really needs about 200 billion to get through this with taxes down 25%.  That puts Vermon'ts take at 5 billion.  The total bill comes to some 800 billion.  What has Nancy done with the other 2.2 trillion in her bill?  Her stuff will not pass muster and we will be in for a long negotiation, and likely a collapse of the effort.

She has overplayed her hand. She has short changed the small states.  Vermont's undercount will be repeated across the small and medium states and they will all have a Wile E Coyote moment about this.  Vemonters are already away they got the short end, how long before Montana does the division? It is an impossible task. California with long supply chains will have the most unemployment and get the most money, as will all the large states.  Senators are not buying inot Brad';s nonsense demand theory. Brad should look at some numbers and evaluate the Senates capacity to pass the thing.

Pocahontas is not helping with her desire to short change the oil states. 

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