Senate To Vote on Amendment To Prevent Taxpayer Money Used For Bailouts Of Fiscally Irresponsible States, Disallowing Central Bank From Circumventing Congress

Dr. Paul to Force Senate Vote on Amendment to Prevent Taxpayer Funded Government Bailouts of Mismanaged States

Editor’s note: According to the Heritage Foundation, “Bailing out states is, simply put, a bad idea. It shields politicians from the consequences of their actions, and encourages the same reckless spending habits that got them into a financial mess in the first place. That wouldn’t just harm the rest of us federal taxpayers; it would also do long-lasting harm to their citizens: When federal taxpayer funding runs out, the reckless spending and bigger budgets remain, and states will just raise taxes on their own citizens to make up the difference.”

WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY) will force a Senate vote on his amendment to a temporary government funding bill which would prevent taxpayer funded government bailouts of mismanaged states across the United States.

Dr. Paul’s amendment prohibits the Federal Reserve from purchasing or selling state and municipal debt. Additionally, it prevents the central bank from circumventing Congress to unilaterally provide a financial bailout of profligate states, the costs of which would be borne by the taxpayers through the form of forced subsidized losses or through the hidden tax of inflation.

You can read Dr. Paul’s amendment HERE.

Banner Image: Money. Image Credit – Giorgio Trovato