Monday 20 April 2020

A Little Fantasy

Pause and think over this....you live in a state which has shut down business operations for the most part, and the chief financial officer of the state tax revenue business has asked to see you (the governor).

So the two of you sit down, and he hands you a sheet.  There's two numbers on the sheet.  One is 44.9 billion.  The other is 445-million.  Then he says in a normal year, you collect via tax revenue for the state around 44.9 billion.  The 445-million he says.....is what you are missing each WEEK that you keep business operations for the most part....shut-down.

So just three lousy weeks of a zero-business situation....means you have a short-fall of 1.3-billion minimum.  You (as governor) then ask....how will we make up the short-fall?   The finance guy just grins.....then says 'you can't make it up'.  Either you open things up, or you go to the banks to borrow a massive sum, which you have to pay back with interest later.  That means a massive tax increase coming in 2021/2022.   

Then the little geek finance guy says....if you attempt to go three additional weeks, that brings the sum to 2.7-billion dollars.

So imagine states like Michigan, Illinois, and California.  If you had Obama, with a Democratic-controlled House and Senate....you'd get a free 'gift-money' package.  Presently?  You get nothing.

So pause over the problem here.  Everyone, I suspect....will be open in about two weeks. 

No comments: