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How Fiscally FUBAR Will Your State Be?

Tyler Durden's picture


We all stand 'fingers-over-eyes and thumbs-in-ears' awestruck at the immense wreckage that the fiscal cliff titan will wreak upon the country. However, deep inside our socially responsible minds, all we can really think about is - what about my needs? The Pew Center On The States has just released a very broad and detailed look at just how the increased taxation and reduced spending will impact each and every state. Here, in two simple charts, is the answer.



There is a great deal of uncertainty about whether any or all of the policies in the fiscal cliff will be addressed temporarily or permanently, individually or as a package. Given this, it is useful to look at the different components of the fiscal cliff; examine how federal and state tax codes, revenues, budgets, and spending are linked; and provide a framework for assessing how states could be affected.

For example, almost all states have tax codes linked to the federal code. When certain expiring tax provisions within the fiscal cliff are analyzed independently, they could increase state revenues.

  • For at least 25 states and the District of Columbia, lower federal deductions would mean more income being taxed at the state level, resulting in higher state tax revenues.
  • At least 30 states and the District of Columbia would see revenue increases because they have tax credits based on federal credits that would be reduced.
  • At least 23 states have adopted federal rules for certain deductions related to business expenses. The scheduled expiration of these provisions would mean higher taxable corporate income and hence higher state tax revenues in the near term.
  • Thirty-three states would collect more revenue as a result of scheduled changes in the estate tax.

However, six states allow taxpayers to deduct their federal income taxes on their state tax returns. For these states, higher federal taxes would mean a higher state tax deduction, reducing state tax revenues.



The scheduled spending cuts also would have a significant impact on states. Federal grants to the states constitute about one third of total state revenues, and federal spending affects states’ economic activity and thus their amount of tax revenues.

  • Roughly 18 percent of federal grant dollars flowing to the states would be subject to the fiscal year 2013 across-the-board cuts under the sequester, according to the Federal Funds Information for States, including funding for education programs, nutrition for low-income women and children, public housing, and other programs.
  • Because states differ in the type and amount of federal grants they receive, their exposure to the grant cuts would vary. In all, the federal grants subject to sequester make up more than 10 percent of South Dakota’s revenue, compared with less than 5 percent of Delaware’s revenue.
  • Federal spending on defense accounts for more than 3.5 percent of the total gross domestic product (GDP) of the states, but there is wide variation across the states. Federal defense spending makes up almost 15 percent of Hawaii’s GDP, compared with just 1 percent of state GDP in Oregon.

There is still a lot of uncertainty about how the fiscal cliff would affect states. States might amend their own tax codes in response to the federal tax changes. How across-the-board program cuts under the sequester would actually be implemented is still unclear. In addition, the effect on individuals from the tax increases and spending cuts will vary by state, and states will face difficult choices in addressing these impacts.



Decisions will be made even amid this uncertainty. The public interest is best served by an enriched policy debate that incorporates implications for all levels of government and leads to long-term fiscal stability for the nation as a whole.


Full report here:


Pew Fiscal Cliff Report


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Thu, 11/15/2012 - 22:37 | 2986580 PrintingPress
PrintingPress's picture

Death and taxes!

Thu, 11/15/2012 - 22:43 | 2986593 ACP
ACP's picture

"What about my needs?"

Hmm...probably explains why a certain party is no longer quoting JKF.

Thu, 11/15/2012 - 23:44 | 2986703 Michaelwiseguy
Michaelwiseguy's picture

No worse than France the day after WWII.

Thu, 11/15/2012 - 22:37 | 2986582 czarangelus
czarangelus's picture

California would be a temperate paradise if not for politics and politicians.... Long Barony of Santa Cruz.

Thu, 11/15/2012 - 23:53 | 2986715 AldousHuxley
AldousHuxley's picture

because California is a paradise that people still tolerate idiot politicians.


but tolerance has its limits.




Fri, 11/16/2012 - 00:19 | 2986768 fourchan
fourchan's picture

detroit is going to bankrupt next month and as we go you will go.

Fri, 11/16/2012 - 00:47 | 2986811 THX 1178
THX 1178's picture

You're from Detroit? God Damn. What's it like?

Fri, 11/16/2012 - 01:57 | 2986859 dark pools of soros
dark pools of soros's picture

It's like Bartertown without anything to barter

Fri, 11/16/2012 - 06:37 | 2987001 e-recep
e-recep's picture

damn, i need a new keyboard now.

Fri, 11/16/2012 - 03:53 | 2986929 mick_richfield
mick_richfield's picture

It's like the future.

Fri, 11/16/2012 - 10:31 | 2987532 toady
toady's picture

I've been say watch Detroit, it's what the rest of North America will look like in 5 to 10 years.

Fri, 11/16/2012 - 11:35 | 2987818 FEDbuster
FEDbuster's picture

The parasitic cancer will spread, until it is treated with targeted radiation (figuratively speaking of course).

Fri, 11/16/2012 - 12:00 | 2987941 BraveSirRobin
BraveSirRobin's picture



Fri, 11/16/2012 - 05:54 | 2986983 smlbizman
smlbizman's picture

hard to understand how the motor city could be in trouble...i mean you guys just elected that 8 time felon....

Fri, 11/16/2012 - 07:41 | 2987035 dwayne elizando
dwayne elizando's picture

There is always Bouzoukis!

Thu, 11/15/2012 - 22:40 | 2986585 fonzannoon
fonzannoon's picture

Many of the teachers in NY have a retirement plan that Guarantees them 8.25% fixed on their contributions. I think it may be down to 8% now becase of where rates are. The Pension system is so fucked they are already borrowing from it to pay out to the retirees. If housing had not crashed they could keep raising real estate taxes under the radar but people are catching on. The punch line is many teachers chose option "B" which is the variable or "market" option because they felt 8.25% did not cut it. Granted this is not inclusive of their pension or their free healthcare. This is just their voluntary retirement plan. I want that pension system to break so bad my balls hurt thinking about it.

Thu, 11/15/2012 - 22:50 | 2986607 Seasmoke
Seasmoke's picture

Patience grasshopper , you wil be able to shoot your load on the very near future.

Thu, 11/15/2012 - 23:22 | 2986660 HappyCamper
HappyCamper's picture

"The punch line is many teachers chose option "B" which is the variable or "market" option because they felt 8.25% did not cut it."

These are the geniuses teaching our children?


Thu, 11/15/2012 - 23:48 | 2986711 Michaelwiseguy
Michaelwiseguy's picture

Why should the 75% of the population who don't get a pension, have to guarantee the money for the 25% that do?

Thu, 11/15/2012 - 23:56 | 2986721 AldousHuxley
AldousHuxley's picture

because 75% are delusional thinking that somehow they are not wage slaves just like teachers and don't need unions or good retirement plans and believe executives and investors will ensure fair wage????


teachers union problem isn't the retirement. It is that they are not including the private sector in their fight.


it is 25% in the non-executive private sector that is paying for 75% of lazy Americans in public sector or heavily political private enterprises.

It is the upper middle class with all of the burden.

Fri, 11/16/2012 - 00:19 | 2986767 Michaelwiseguy
Michaelwiseguy's picture

The upper middle class will be taken out as usual, and there will only be rich and poor. I just hope the poor have enough guns and ammo.

Fri, 11/16/2012 - 01:55 | 2986857 TPTB_r_TBTF
TPTB_r_TBTF's picture



The poor have enough guns, but they donT have enough ammo.

The rich have plenty of both.


Fri, 11/16/2012 - 08:12 | 2987052 SmallerGovNow2
SmallerGovNow2's picture

Majority of the uber rich have been catered to their whole life and haven't a clue about how to take care of themselves in the economic wasteland environment that is coming...

Fri, 11/16/2012 - 10:26 | 2987513 earnulf
earnulf's picture

Doesn't matter if you are rich or poor, it only takes a single bullet with "occupant" on it.

Fri, 11/16/2012 - 03:10 | 2986903 Manic by Proxy
Manic by Proxy's picture

All public pensions are going to Fuckville. I will happily stand on that roadside to ruin, chanting old slogans like "Fuck you and the horse you rode in on" not caring about the dangling participle, but cheering the slack- jawed "teachers" marching to the friendly confines of the well-upholstered FEMA camp where they can daily bask in the glow of vintage Obama speeches and listen to Bruce Springsteen singing about New Jersey, watching Michael Moore cinema verite until they snap like decayed shit noodles and turn on each other, screaming obscenities like "Ron Paul was right" and gouging out eyes with silver spoons wrested from the mouths of banksters. Yeah, that's how it should be. Excuse me, back to the Sterno.

Fri, 11/16/2012 - 07:41 | 2987036 QuietCorday
QuietCorday's picture

First we had Ghenghis full Bukowsky style and now Manic's gone Ginsberg.

This is a good day for comment prose on ZH. 



Fri, 11/16/2012 - 10:57 | 2987636 bushwarcrime
bushwarcrime's picture

ohhh that's good,  Stone? what was your name before you changed it?


Thu, 11/15/2012 - 22:39 | 2986586 Cursive
Cursive's picture

Hmm.  DC, Maryland, and Virginia are all sucking large off the federal teat.  Arkansas, New Mexico and Hawaii not far behind.  Press the reset button, already.

Thu, 11/15/2012 - 22:59 | 2986627 notadouche
notadouche's picture

Arkansas?  I don't read it that way.

Thu, 11/15/2012 - 23:04 | 2986637 Cursive
Cursive's picture


Mistake.  Should be Alaska.

Thu, 11/15/2012 - 23:42 | 2986698 ArkansasAngie
ArkansasAngie's picture

Thanks :)

Arkansas won't pay much more and ... since we don't get much in the first place we won't loose much either.

Please forget you've ever heard of Arkansas.  Please ... please stay where you are.

Fri, 11/16/2012 - 00:39 | 2986765 MachoMan
MachoMan's picture

I wish we could tell that to all the refugees coming in from mississippi, tennessee, and the bootheel...  as well as all the damn yankees buying farm land...  at least the farm bubble will burst soon enough.  (many of the large landowners now have predecessors that purchased the tracts at tax sale for nothing following the last bust).  I shudder to think of our shadow public employee retirement obligations...  but we don't look too bad on the published paper at least.

Fri, 11/16/2012 - 02:05 | 2986867 dark pools of soros
dark pools of soros's picture

how can the same country pronounce Kansas and Arkansas so fucking differently

was there a fight or something?



Fri, 11/16/2012 - 02:25 | 2986884 tickhound
tickhound's picture

Unrelated other than spelling.

Has to do with the "french" quapaw and the kansa tribes.  You kick them out then you name a state after 'em.

It was a procedure that laid the foundation for the diversity we champion today.

Fri, 11/16/2012 - 10:42 | 2987571 toady
toady's picture

I pronounce them the same, Kansas & ar-kansas.

It does seem to confuse people when I'm in ar-kansas though ...

Thu, 11/15/2012 - 23:05 | 2986636 JLee2027
JLee2027's picture

Yes. My personal estimate is that 61% of Maryland's budget comes in some way shape or form from the Federal Government. And that's only what they can't hide. We are beyond FUBAR.

Thu, 11/15/2012 - 23:45 | 2986707 Fred Hayek
Fred Hayek's picture

While I bear you no personal animus, JLee2027, I think I speak for many across the U.S.A. when I say that I will richly enjoy the real estate bubble finally bursting in the lands around DC, the leafy suburbs where economic causality is kept at bay by Big Brother's spending. Let a thousand for sale signs bloom in every town like the prettiest flowers you ever saw. See how the rest of us have had it for 4 years.

Fri, 11/16/2012 - 00:00 | 2986727 AldousHuxley
AldousHuxley's picture

DC is rome. when rome burns satellite cities burn even more. elites will rescue DC, Manhattan upper east side, before anything.


just look at NYC real estate prices despite wall st. fallout. They are globally priced.


poor americans.

Fri, 11/16/2012 - 02:07 | 2986868 dark pools of soros
dark pools of soros's picture


Fri, 11/16/2012 - 10:29 | 2987524 earnulf
earnulf's picture

Well, they might rescue it, but I hope they have a way to grow food on concrete to sustain their upper east side lifestyle.

Hard to live without the basics, food, clean water, guess they'll still have shelter.

Fri, 11/16/2012 - 10:49 | 2987607 zuuma
zuuma's picture



just look at NYC real estate prices despite wall st. fallout. They are globally priced.



But also look at large parts of NYC like Staten Island & Long Island that can't get the power turned on after a big storm.

Those sophisticated, global elites still crappin' in the hallways??  [I confess, that brought a smile to me :) ]

Did I not read about a high-rise in Manhattan (still?) that has no power & smells very bad? More hallway crappin', I guess.

When the big worldwide RESET hits, New York will be renamed to New Calcutta.

What rich dude wants to buy a pad that stinks & can't keep the power on?

Fat lotta good their Central Park East view & gold-plated toilet seat are now, huh?

Long Belize beach estates!

(I hear a nice one's coming up for sale very soon!)

Fri, 11/16/2012 - 09:02 | 2987177 Urban Redneck
Urban Redneck's picture

Even though I have rental property up in MD, I still hope they shut the whole thing down.  It's called shared sacrifice, and it's apparently a foreign concept in DC.  

Fri, 11/16/2012 - 10:57 | 2987641 bushwarcrime
bushwarcrime's picture

deja vu


Thu, 11/15/2012 - 22:46 | 2986599 Seasmoke
Seasmoke's picture

Looks like the citizens of Washington state do not have to give a fuck about any cliffs.

Thu, 11/15/2012 - 22:48 | 2986604 Seasmoke
Seasmoke's picture

Also I never realized how beneficial paying all these taxes in nj and getting. Very little back would be when we go over the cliff. Well at least we have that going for us.

Thu, 11/15/2012 - 22:52 | 2986614 fonzannoon
fonzannoon's picture

Thats because NJ has "Jug handle" turns. Basically if you want to make a left you have to make a right. For that they deserve whatever bad comes their way.

Thu, 11/15/2012 - 23:43 | 2986700 flacon
flacon's picture

Not to mention sideways traffic lights. 

Thu, 11/15/2012 - 23:44 | 2986705 A Nanny Moose
A Nanny Moose's picture

OT Rant: Goddamed Jug Handles!

First rule of driving in NJ: Wherever you want to go, you cannot get there from wherever you are.

Fri, 11/16/2012 - 01:47 | 2986852 Oracle of Kypseli
Oracle of Kypseli's picture

I was told once that the best place in NJ is a smal town in the exact center of the state, because no matter which way you drive, you're leaving NJ.

We once got lost in Staten Island looking for the ferry. We aked some youngsters (heavy Italian accent) hanging out in a corner pizzeria.

They said: You can't get there from here. You first gottta go to some stteet I forget. Then they said: You will see the exxon station. you don't want that. You keep going. Then you see Angelo's pizzeria and you make a left. then you go about a mile and you see Mario's pizzeria and you make a right and on and on with pizzerias and gas stations.

We did get to the ferry and after all these years we still remember all the pizzerias in Staten Island and all the gas stations that we did not want but were there.  

Fri, 11/16/2012 - 02:15 | 2986877 dark pools of soros
dark pools of soros's picture

People in PA laugh at Jersey about all those too, but we got tons of jug handle turns out in the burbs, a big fucking circle by the art museum to be proud of, and plenty of death trap cross-overs that are like those slot car racer lane switchers that no one has a clue how to use



Fri, 11/16/2012 - 00:12 | 2986757 ghengis86
ghengis86's picture

We call those "Michigan lefts" up here. Shit, I'd take a traffic circle over those any day. Not the crappy small circles they try to wedge into existing intersections; the really big fuckers where you feel like you could Tokyo drift in your shitty Beretta on your way to the unemployment office cause you're sick of hearing that bitching from the old lady who thinks her WIC don't stink. Next thing you know your Robo-tripping cause they put the real Sudafed behind the counter and you can't cook enough crank to toot yourself, much less sell to the slightly less broke friend of yours so you can afford McDs and 30-rack of the good stuff, like Miller Lite instead if that guaranteed-to-give-you-the-shits Strohs. So now you're stuck on the shitter and the old lady is threatening to call the cops cause you can't remember giving her that shiner last night - probably couldn't take her nagging any longer about how lazy you are and how she's the only one working. Yeah, spreading your legs and moaning like a dog in heat is real work. Stupid slut. you've had enough and jump in that piece of shit Baretta that your smarter, richer, better looking younger brother gave you after he got a real job managing the local Olive Garden which is ironic since you gave it to him after you got that real job selling mortgages for Countrywide. Bob Seger's Roll Me Away comes on and you're feeling pretty good, cruising down the open road, ready to finally get your act together and head towards the local community college but find out you CAN'T MAKE A FUCKING LEFT TURN TO GET THERE and just turn right, see that Walgreens again and decide its time to bump it off for their little red pills and build an empire where you'll never have to worry about money again. It worked for that chemistry teacher from that documentary on TV, right?

Fri, 11/16/2012 - 00:35 | 2986793 caustixoid
caustixoid's picture

Had to log in just to upvote that excellent bit of gonzo writing.

Fri, 11/16/2012 - 02:16 | 2986880 IrritableBowels
IrritableBowels's picture


Fri, 11/16/2012 - 05:27 | 2986973 Snidley Whipsnae
Snidley Whipsnae's picture

best thing to come out of NJ? ... an empty Greyhound!

Fri, 11/16/2012 - 07:31 | 2987030 negative rates
negative rates's picture

They are already considered the armpit of the nation, how much worse does it get before people simply walk away and sleep on a bench in LA.

Fri, 11/16/2012 - 12:06 | 2987978 BraveSirRobin
BraveSirRobin's picture

Not to mention you cannot pump your own gas.

Fri, 11/16/2012 - 10:47 | 2987595 GeezerGeek
GeezerGeek's picture

My sister and brother-in-law finally left NJ earlier this year and moved to Florida. They had been considering moving from Bergen County (near NYC) and retiring to the Jersey shore. Now they're glad they chose Florida, as the area they'd been considering - and friends they know - were devastated by Sandy. I left NJ in 1973 and never looked back except to mock those who lived there.

Thu, 11/15/2012 - 22:55 | 2986617 jomama
jomama's picture

BYOKY, folks.

Thu, 11/15/2012 - 22:56 | 2986620 caimen garou
caimen garou's picture

glad i'm not the only one using the word fubar these days, it's what the whole tax system is.

Fri, 11/16/2012 - 00:28 | 2986782 Seer
Seer's picture

Sorry to inform you, but the tax system is the least of our worries...

Our PROBLEM is that we still haven't identified the problem being that we don't understand the exponential function (which the financial sector, the govt, the pension plans etc base themselves on- perpetual growth on a finite planet- just what the fuck about this not being a good formula do people not get?).

Fri, 11/16/2012 - 10:49 | 2987604 GeezerGeek
GeezerGeek's picture

The term has been around a long time. But I never figured out if the 'bar' meant 'beyond all recognition' or 'beyond all recovery'. Both seem to fit our situation so well.

Thu, 11/15/2012 - 22:58 | 2986626 UP4Liberty
UP4Liberty's picture

Jeez - this is very simple.  Cut all budgets by 10% for fiscal 2014.  Cut another 10% for fiscal 2015.  In two years we knock down spending by 20%.  It is not rocket science.

Thu, 11/15/2012 - 23:10 | 2986652 JLee2027
JLee2027's picture

Of course. And it was even easier 5 years ago. And no one has done it. Because the politicans created the dependants to buy the votes and they can't/won't change now. 

Thu, 11/15/2012 - 23:21 | 2986659 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, + 1

Of course it's the spending!  But, like you write, it will not happen due to the 50% +.

Fri, 11/16/2012 - 00:02 | 2986731 AldousHuxley
AldousHuxley's picture

name one corporate that is completely independent from corporate welfare?

they are all here because they get handouts too.


otherwise they'd be gone like Halliburton who moved to Dubai.


it is not about the voters, but where voters will spend the government subsidy.

Thu, 11/15/2012 - 23:22 | 2986662 Tsar Pointless
Tsar Pointless's picture

Yes, and please do remember, many of those dependants are clad in military uniforms and/or belong to the biggest public/corporate welfare program of them all - the MIC.

Everybody says they want to cut the federal budget deficit, until the axe targets the trees in their backyard.

Feed the babies. Cure the sick. Care for the elderly. Kill the miilitary and intelligence monoliths.

There's my plan for America.

Thu, 11/15/2012 - 23:59 | 2986725 rambo1028
rambo1028's picture

Had to log in to +1 ya Tsar! So when are you running for office? 

Fri, 11/16/2012 - 00:15 | 2986756 Tsar Pointless
Tsar Pointless's picture

Please - but thank you for your +1. I'd never stand a chance. I'd be Ted Kennedy'd, or worse - Paul Wellstone'd - on Day One if I even had a whiff of "winning" an election.

Assholes like Bill O'Reilly aim to convince his mind-numbed robots that it's thee "50-percent" of Americans who want "stuff" that are ruining "traditional" America, when - in reality - 99% of us count on government to protect us from assholes like Bill O'Reilly and his ilk.

Have you ever driven on a road or over a bridge? Have you ever relied upon a fire or police department for your safety or protection, or do you you have someone employed by either department? Then you, my friend, are NOT on Bill O'Reilly's Christmas list - provided us Godless progressives don't win the "War on Christmas" before December 25, 2012.

We need government. Fuck - we ARE government. The "We" in "We the People" are being torn apart by stupid so-called "cultural" issues such as same-sex marriage and abortion. As soon as the "We" in "We the People" come to agreement that government has NO RIGHT arming its way into our personal lives (the very definition of "Big Brother"), then I might run for office.

As you may surmise, I am not holding my breath in anticipation of that day.

Fri, 11/16/2012 - 00:44 | 2986807 Seer
Seer's picture

Folks like O'Reilly don't produce a fucking thing.  ALL the talking-heads live off of power.  And those who really, REALLY MUST have it will beat you or anyone else to it.  And of course, the irony is is that these folks don't have to really work for it, all they have to do is to suck up to power.

You see, it's POWER that is the REAL issue.  Creating/maintaining a throne of power, a centralized government in hopes of eliminating the abuses of POWER is illogical and has no basis whatsoever for delivering the scenario that you're calling for.

Yeah, we've got to put up with all those nut-cases who cling to stupid "cultural" issues (which, really, when compared to REAL historical cultures, are no cultures at all (most are fabrications, based in propaganda).  In some places such people won't last very long.  In others they might, but their breed-stock will likely go down, taking the mindset with it.  Eventually evolution asserts itself.  It's like this: would you rather have to face such people directly or would you rather find out (too late) that you're on the "kill list" and have been drone'd?

Fri, 11/16/2012 - 04:10 | 2986939 mick_richfield
mick_richfield's picture

No, we are not government.

That ended a hundred years ago when some very powerful beings convinced Americans to accept a government that could create its own money on command and force the people to accept it.  Within a generation after that time, the Powers that engineered that coup controlled all politics in the US that they cared about.  They then set about spreading their control from the Anglosphere to the rest of the globe.

Harking back to the fine words of the founders, while ignoring what has happened since 1913 -- that's a fairy tale told by monsters to children to keep them calm while the oven warms up.


Fri, 11/16/2012 - 10:57 | 2987635 GeezerGeek
GeezerGeek's picture

Feed the babies? Cure the sick? Care for the elderly? Whatever happened to personal responsibility, to taking care of one's own? I'd replace that with 'keep the government's hand out of your pocket.'

If you want to feed the babies, cure the sick and care for the elderly out of your own pocklet, fine. Include me out if you want use the power of government to force me to do so.

Thu, 11/15/2012 - 23:21 | 2986661 Beam Me Up Scotty
Beam Me Up Scotty's picture

He said cut!! Revoke his citizenship!!

Fri, 11/16/2012 - 00:57 | 2986818 Legolas
Legolas's picture

I question whether your suggestion can be done.  I would like to see a chart on what percentage of each state's budget goes to pay for federal unfunded mandates. 

My hunch is that after seeing how much, we will want to just scrap the federal system and re-think the loose confederation philosopy of interstate relationships.  States may get alot of bennies from the federal government, but none of them come without strings attached.  At some point we must just say "NFW" and cut the umbilical cord because we can feed on our own.  I really think it is all going to have to collapse before such becomes a tenable option though.

Fri, 11/16/2012 - 09:49 | 2987359 hawk nation
hawk nation's picture

I like your thoughts but i think the plan by obama and his hord is to try to do the opposite and eliminate states rights

The last hope for us americans is for the governors to secede from the united states or for our currency to collapse thereby removing all power from washington 

Fri, 11/16/2012 - 09:10 | 2987184 NidStyles
NidStyles's picture








Then people wonder why the US is so fucked up. They can't even do basic math. If you knock off 10% the first year, the second year's 10% is 10% smaller. This doesn't solve the problem, it just keeps the spending down with Inflation.


Honestly, the problem is unsolvable, it's already too late. What would have solved it was not participating in the Bial-outs/stimulus and cutting the government by 80% at the same time. That would have solved it back then and allowed the ponzi to keep going. Now, not so much anymore. You're screwed.



Fri, 11/16/2012 - 11:39 | 2987833 sdmjake
sdmjake's picture

Not to be a bitch but...

you'd only be spending 19% less two years from now following that path. ($100 spent today, cut 10% = $90.... then $90 cut 10% = $81)

Real Austerity is a bitter pill but I'm with you...we need to start taking that red, bitter medicine soon...


Thu, 11/15/2012 - 23:03 | 2986632 John Law Lives
John Law Lives's picture

Glad to see ZH using the acronym, FUBAR, since it is so applicable and appropriate.

Thu, 11/15/2012 - 23:10 | 2986647 scatterbrains
scatterbrains's picture

Never mind all that..  where my  /ES 1350 support niggas at ?  better get in there and start bidding.. your grip is starting to fade as 1348 starts to slip away.

Thu, 11/15/2012 - 23:31 | 2986681 buckethead
buckethead's picture

I took the time to read the report. I should have just stopped after reading the ZH condensed version. All the red meat is contained herein. 

Fri, 11/16/2012 - 00:06 | 2986743 Common_Cents22
Common_Cents22's picture

MN has nothing to fear because we have Stuart Smalley representing us!  People like us!

Fri, 11/16/2012 - 02:47 | 2986892 Manic by Proxy
Manic by Proxy's picture

Sure, you're smart enough.

Fri, 11/16/2012 - 02:57 | 2986895 zhandax
zhandax's picture

How in the hell did the same state that elected Jesse Ventura governor put that ass hat in the senate and vote for o'golfer twice?

Fri, 11/16/2012 - 09:09 | 2987198 toomanyfakecons...
toomanyfakeconservatives's picture

Probably the same reason my state elected a horde of demon-cat liberals... too many demon-cat liberals fleeing high tax states and migrating there.

Fri, 12/07/2012 - 09:40 | 3042188 Common_Cents22
Common_Cents22's picture

MN is a high taxed state.  I think they put something in the water.

Fri, 11/16/2012 - 11:01 | 2987656 GeezerGeek
GeezerGeek's picture

Same way Obama got 100% of the votes in all those Philly precincts.

Fri, 11/16/2012 - 03:19 | 2986911 q99x2
q99x2's picture

Secede before the power goes off.

Fri, 11/16/2012 - 07:22 | 2987022 virgilcaine
virgilcaine's picture

VP Paul Ryan would have fixed it.


Fri, 11/16/2012 - 07:29 | 2987029 overmedicatedun...
overmedicatedundersexed's picture

my son is representing a tax payer in NY state..she OVERPAID in 2010, and took a credit for the Overpayment in 2011..well the the good state of NY has told my son that tax payer has to pay penalties and taxes for the credit she took in 2011, why you ask? well the good state says you only have 1 year to make changes to her return, and they did not send the audit until 2012 they will not look at or recongnize the 2010 return!!!!!

pay up tax units.

Fri, 11/16/2012 - 08:00 | 2987046 Monedas
Monedas's picture

The Free Market is our friend:   Even in California .... life is possible !    I have a $20 bill ! I go to McDonald's drive through .... and order 2 double patty/cheese value menu burgers, a chicken sandwich and a senior coffee and condiments for three people.... $3.98 ! I cross the street to Baja Duty Free and buy 2 cartons $16 ($8 ea.) of Skydancer 100s full flavor Class A cigarettes for bartering ! Sometimes I buy one carton of cigs and a 5 liter box of Vella "Drinkable Red" wine $8 !  I pocket $ .02 change and am "escorted" to Tijuana ! Resourceful people have no fiscal cliffs !

Fri, 11/16/2012 - 08:17 | 2987060 JackT
JackT's picture

What is in Arkansas? Is there a new Area 51 I've not heard about?

Fri, 11/16/2012 - 11:03 | 2987666 GeezerGeek
GeezerGeek's picture

Never heard of the airport at Mena?

Fri, 11/16/2012 - 08:41 | 2987115 jplotinus
jplotinus's picture

Bullish for blue states; red, not so much

Fri, 11/16/2012 - 08:47 | 2987138 orangegeek
orangegeek's picture

Here's the irony.  If government stimulates, the economy stalls and collapses.


If the government goes austerity, big spending halts, the economy stalls and collapses.


Barry chose to win re-election by blowing everything instead of managing cuts and spending simultaneously.  Barry's going to regret this in 2013.


For you elliott wavers, it's primary wave 3 down.


For the rest of you, we are headed into a multi year decline and it's going to hurt real bad.

Fri, 11/16/2012 - 09:16 | 2987213 NidStyles
NidStyles's picture

If the government were to adopt Austerity the the stall would be over quickly, it would just be the period of time where the clearing actions can take place to cleanse the bad investments and faulty capital. It will not save the economy, because the foundations of the economic manipulations are built on a faulty premise and eventually the clearing actions would be overloaded like they are now, and we end up in the same situation down the road.

Fri, 11/16/2012 - 09:41 | 2987328 hawk nation
hawk nation's picture

When you say decline i think the term to use is depression

6 months from now that is where we will be

Unless austerity comes with a 50% reduction in federal regulation america is in deep trouble.I just think this has always been obamas plan to take complete control of the country and eliminate states rights and the constitution 

Fri, 11/16/2012 - 11:06 | 2987680 GeezerGeek
GeezerGeek's picture

Make that an 80% reduction. For starters.

And...why not eliminate states' rights and the constitution? Obama already eliminated individual rights, so it seems only fair.

Fri, 11/16/2012 - 09:21 | 2987264 AU5K
AU5K's picture


Fri, 11/16/2012 - 10:31 | 2987527 Lord Drek
Lord Drek's picture

Ordo ab chao.

There'll come a day when they won't be able to keep the masses from fighting over who gets a cell at the FEMA camps. Until then, it's extend and pretend.

Fri, 11/16/2012 - 14:06 | 2988691 divide_by_zero
divide_by_zero's picture

California is way more FUBAR than this chart would indicate, our fine electorate have given the Democrats a super majority in both state houses, plus governor. Their first order of business was a bill to TRIPLE motor vehicle fees. My guess is next up or at least very soon the repeal of Prop 13 which kept property taxes somewhat sane, to the extent that any property tax is sane. The electorate also passed Prop 30, an income tax increase on "the rich" (> $250K) "for the kids", after Brown threatened to fire teachers, but not any of the myriad crony commissioner appointments. No telling what kind of wacky taxing and spending we'll see next, worst part Brown can't even veto should even he feel the need to rein things in.

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