Without tariff revenue, Congress will have to wrestle with how to take candy from children as the tax cut would have to go.

Or, find other things to cut. Several years ago, as an exercise, I went through all the money the Feds dole out to cities and states: Education funding, which I think is being phased out anyway, road funding, police funding, "blight clearance" funding. I found about $1T that could be cut. When I did that exercise, that would have been enough to balance the budget.

Just exactly how did the Federal government get into the business of funding state and local responsibilities, for people who refuse to tax themselves to raise that money? Did this grow out of Nixon's "revenue sharing" program in the early 70s? I remember Kalamazoo County resurfacing roads that were not that bad in the first place, just to use up that free money from DC. Now, it seems states and cities are dependent on Federal handouts.

from the net sifter:

President Richard Nixon’s revenue sharing, a cornerstone of his "New Federalism" program, was enacted through the State and Local Fiscal Assistance Act of 1972. It distributed $30 billion in federal tax revenue to state and local governments over five years with few strings attached, aiming to decentralize power, reduce federal bureaucracy, and allow local governments to tailor spending to their needs.

Key Aspects of Nixon’s Revenue Sharing:

Purpose: The initiative sought to return authority to state and local officials, shifting power away from Washington D.C.

General Revenue Sharing (GRS): Signed in 1972, this provided flexible, "no-strings-attached" funds, which could be used for, among other things, public safety, environmental protection, transportation, and health.

Special Revenue Sharing (SRS): Proposed to consolidate hundreds of categorical grants into broader block grants for specific areas like community development, law enforcement, and manpower training.

Impact: It represented a major shift in federal aid, allowing local governments to fund services, reduce taxes, or start new programs.

Background and Goals:

"New Federalism": Revenue sharing was designed to foster a new partnership between the federal government and localities, based on the belief that local officials were best suited to address local needs.

Political Strategy: The plan was aimed at shifting funding away from traditional Democratic strongholds (major cities) toward states and suburban/rural areas that formed part of Nixon's political base.

Reducing Bureaucracy: It intended to cut through federal "red tape" associated with traditional, highly specific federal grants.

Steve