[wisegoat]

Ok we've all seen that site that counts the trillions of dollars in the red you Americans are in... but I was just watching an old Alex Jones program tonight that was talking about the Annual Financial Reports and apparently each state alone brings in hundreds of billions of surplus, adding up to like 30 trillion dollars yearly in uninvested profits. If this is true, it's no wonder that Alex Jones laughs at Peak Oil, because PO is a theory that scares only the lower and middle classes. Why is big government hiding this surplus? Why isn't big government acknowledging PO? Deep questions to be sure.

[Andrew_S]

$this->bbcode_second_pass_quote('wisegoat', 'O')k we've all seen that site that counts the trillions of dollars in the red you Americans are in... but I was just watching an old Alex Jones program tonight that was talking about the Annual Financial Reports and apparently each state alone brings in hundreds of billions of surplus, adding up to like 30 trillion dollars yearly in uninvested profits. If this is true, it's no wonder that Alex Jones laughs at Peak Oil, because PO is a theory that scares only the lower and middle classes. Why is big government hiding this surplus? Why isn't big government acknowledging PO? Deep questions to be sure.

[Leanan]

The states are required to have balanced budgets. Unlike the federal government, they cannot run a deficit. So most states carry some spare cash as a sort of rainy day fund.

A lot of states are currently running surpluses, because they get their money from property taxes, and the housing market, as we all know, has been hot. The economy also improved a bit, helping with sales taxes.

But these surpluses can be deceiving. If the economy or the housing market sours, so will state revenues. And many states are carrying a lot of debt, in the form of bonds.

[Keith_McClary]

$this->bbcode_second_pass_quote('Leanan', 'T')he states are required to have balanced budgets. Unlike the federal government, they cannot run a deficit. So most states carry some spare cash as a sort of rainy day fund.

A lot of states are currently running surpluses, because they get their money from property taxes, and the housing market, as we all know, has been hot. The economy also improved a bit, helping with sales taxes.

But these surpluses can be deceiving. If the economy or the housing market sours, so will state revenues. And many states are carrying a lot of debt, in the form of bonds.

[Novus]

Alex Jones is just wrong about the surplus. It does not exist. Most state governments are running deficits as well. California and New York are practically bankrupt.

[lawnchair]

$this->bbcode_second_pass_quote('Keith_McClary', '
')??? If they can't run a deficit, how do they end up carrying a debt?

[Specop_007]

$this->bbcode_second_pass_quote('lawnchair', '')$this->bbcode_second_pass_quote('Keith_McClary', '
')??? If they can't run a deficit, how do they end up carrying a debt?

[gnm]

$this->bbcode_second_pass_quote('Novus', 'A')lex Jones is just wrong about the surplus. It does not exist. Most state governments are running deficits as well. California and New York are practically bankrupt.

[frankthetank]

The only state that comes to mind with a "big" amt of surplus is Alaska with their Petroleum Fund...which is 20billion or so. I think WY also runs a nice surplus...

My state of WI and my sister MN are in debt/were in debt/will be in debt again! I know MN was somthing like 2 billion or so in the hole...which probably has to do with the very low property taxes in that state.

[wisegoat]

Well his idea is that there does exist a huge surplus even in states that are nearly bankrupt.. They just don't want to advertise it because then the public would want to see it themselves... he claims that the surplus is so huge that they could have a taxfree America AND give every citizen thousands per year in payouts. But if everyone thinks we're in the red, they can justify taxes, and even more surplus... Apparently one thing they seem to do with this extra money is invest it in the stockmarket... Gee, I wonder if it's true that the government owns 70% of Xerox (one example he gave).. Cuz that's a frightening thought.. what good is a free market if the government owns and controls it all? If this is true, then we've (well, North Americans, i'm Canadian) been living in a successful communist state for quite awhile!

I believe most social programs do turn at least a small profit, at least a little more than enough to pay for the workers. If they didn't then that means they're unpopular, and thus why have the program in the first place? (Of course I believe in actual charities, but even those sometimes seem to be big money)

hmmm

[aahala]

Generally, all levels of US government units are cash poor.

If you were doing a balance sheet, many state and local governments
might show a considerable net worth, the difference between the
assets and liabilites.

The market value of "public goods" such as roads, parks and school buildings could possibly greatly exceed the debt. I doubt this would be
the case with the federal government, there are so many future benefits
promised by the feds that are greatly underfunded.

[Leanan]

Lawnchair is correct. States cannot run deficits like the feds do, but they can pass bond acts to raise money for big projects. This counts as debt, and must be paid back (plus interest). These are usually dedicated to specific projects - improving schools, building highways and bridges, building a sports stadium or commuter train line, say.

States really do have a huge surplus right now. Dunno if it's 30 billion, but it wouldn't surprise me. 30 billion is not a lot, spread over 50 states. There will likely be tax cuts offered next year, just in time for the election:

http://www.usatoday.com/news/nation/200 ... axes_x.htm

[duke3522]

$this->bbcode_second_pass_quote('Leanan', '
')States really do have a huge surplus right now. Dunno if it's 30 billion, but it wouldn't surprise me. 30 billion is not a lot, spread over 50 states. There will likely be tax cuts offered next year, just in time for the election:

http://www.usatoday.com/news/nation/200 ... axes_x.htm

[cube]

$this->bbcode_second_pass_quote('Novus', 'C')alifornia and New York are practically bankrupt.

[grabby]

Blonds...

[Leanan]

$this->bbcode_second_pass_quote('', 'A') few years ago our state supposedly had a huge surplus, and there was a contest between the Republocrats and the Demlicans to see who could cut taxes the most. The tax bill that passed was mostly aimed at those making $250K plus. We were told “Don’t worry we’re rolling in cash.” Two years later the state was broke and on the verge of laying off employees from office clerk to state troopers.

[Specop_007]

$this->bbcode_second_pass_quote('Leanan', '')$this->bbcode_second_pass_quote('', 'A') few years ago our state supposedly had a huge surplus, and there was a contest between the Republocrats and the Demlicans to see who could cut taxes the most. The tax bill that passed was mostly aimed at those making $250K plus. We were told “Don’t worry we’re rolling in cash.” Two years later the state was broke and on the verge of laying off employees from office clerk to state troopers.

[oilluber]

The US is filthy rich, very rich ,,, for the top 10%.
Wait another 5 yrs and you will see this wealth even
become more concentrated to the top 5%.

Some day, they can reach the extremes like China and Russia,
where wealth will be concentrated inthe top 1%.