The real worry here is that states have constitutions that require them to balance their budgets. The money from the feds (simply a wealth transfer, after a healthy bite taken out for overhead) helps to balance those budgets. But won't it become a death spiral? The worse the economy gets, the less sales tax revenue for the states, and the more the states will demand more money from the feds. So as you and I try to save some money by cutting back on expenditures, state sales tax revenues go down. Then the states ask for more money, which they take from us via federal income taxes, which makes us cut back more...
One word: UNSUSTAINABLE.
H/T Heritage.org and The Corner
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