A recent analysis on how far various states are behind on their pension obligations reminds us why the Redoubt is a great place to live.
So, you might be worried about how much of your money the Feds want, but CNBC did a report and analysis on the growing state pension crisis. The pension shortfalls are a state problem with much less “kick-the-can” possibilities than the feds have. So the feds will eventually raise taxes to cover all their overspending, but the states are likely to hit you a lot sooner, depending what state you live in.
The results were actually rather surprising. If each state were to go and hit its residents with a one time tax to close the gap, right now, what would they hit you for?
I thought CA might be much higher, but with so many people the pain gets spread around more.
ID is a Redoubt winner. It’s third from last because the list is sorted as a percent of GDP rather than total per resident. ID is actually second from last for total per resident.
WY is in the bottom 10 on GDP ratio, but bumps up to 11 on total bill. I was surprised to see MT right in the middle of the pack.
Among Redoubt states, what this reflects is how well a state spends within its means. ID is a poorer state both within the Redoubt and within the US, but it typically lives within its means. MT and WY have made a bit more pension promises and deficit spending, but they are also wealthier states, comparatively.
And wow it sucks to be in the blue new England states. Many of the small ones apparently have been living on a NY budget without a NY population to pay for it.
Alaska was another surprise. It’s usually thought to be more conservative, but apparently they’ve been spending like mad without a population to support it.
For those high dollar states, the bill is GOING to come due. Each year that goes by is a year closer to catastrophic tax-and-correct schemes to bail out the poorly managed state liabilities.
I’m so glad I moved the Redoubt!