. . .
To understand how they got to this point, you need to know what government in America does with your tax dollars.
The federal government, as an old line puts it, is basically an insurance company with an army: nondefense spending is dominated by Social Security, Medicare and Medicaid. State and local governments, however, are basically school districts with police departments. Education accounts for more than half the state and local work force; protective services like police and fire departments account for much of the rest.
So what happens when hard-line conservatives take over a state, as they did in much of the country after the 2010 Tea Party wave? They almost invariably push through big tax cuts. Usually these tax cuts are sold with the promise that lower taxes will provide a huge boost to the state economy.
This promise is, however, never — and I mean never — fulfilled; the right’s continuing belief in the magical payoff from tax cuts represents the triumph of ideology over overwhelming negative evidence.
What tax cuts do, instead, is sharply reduce revenue, wreaking havoc with state finances. For a great majority of states are required by law to balance their budgets. This means that when tax receipts plunge, the conservatives running many states can’t do what Trump and his allies in Congress are doing at the federal level — simply let the budget deficit balloon. Instead, they have to cut spending.
