SALT or not, can the big five blue states Survive?

[william the wie]

CA, IL, MA, NJ and NY make pretty much everybody's list of the walking dead. They do so because their tax base is effectively a Ponzi scheme. In the case of CA and IL defaults on unbonded debts combined with net outmigration of citizens and illegal aliens taking up the slack while amplifying the crimerate is a major challenge. (IOUs and not having vendor credit is a default.) CA is currently burning because the dedicated fire prevention funds were spent on more politically important activities. Insurance money will be diverted in ever higher percentages to out migration from the big five until either CA or IL go into default on bonded debt and they end up in chapter three. At that point it will get ugly and perp walks for the politicians will follow. SALT will speed things up only slightly, if it does make it to the president's desk but it will be the same 5-15 blue states that will fall like dominoes.

 

[DarkFury]

No they can't. They are fast approaching the point where even a SALT write off cannot save them. Toss in Seattle with its rich punishment tax and it get worse. If liberal cities are allowed an extra tax on top of state it will fail faster. I think the votes are there in the Senate anyway to pass the reform without keeping the SALT.

While population dictates a liberal majority by seats in the house the Senate does not have that burden. But it needs to be done now while we have those seats!