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Federal Money to the States Isn’t ‘Free’

Anthony241 Wrote: Jan 27, 2013 3:03 AM
The problem for state officials is that the feds are going to take this money out of their state in federal taxes no matter what they do. Getting some of it back becomes a rational choice.
Kibitzer Wrote: Jan 27, 2013 6:24 PM
The biggest problem with the states getting money from their taxpayers by way of Washington is that Washington skims too much off the top. There is no free lunch or federal money, but the state and local politicians don't care so long as they can say, we didn't tax you and we got that free money from Washington. Liars one and all.

Richmond Times-Dispatch columnist A. Barton Hinkle recently made what should be a simple point to understand, but it’s unfortunately one that few people seem to appreciate. Writing about the supposed win-win situation whereby states expand Medicaid coverage and the federal government foots most of the bill, Hinkle reminds readers that the “free” federal money isn’t really free: 

In Virginia, officials...

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