Revenue shortfalls and bankruptcies: Nation vs. State, State vs. City, City vs. Wealthy

Federal vs. State.

This RFP for receivers to liquidate the real estate owned by failed banks, calls on the contracting receivers to front all property taxes, including past-due amounts, until such time as the properties are liquidated. The federal government also is exempt by law from paying interest and penalties on past-due amounts.

Thus, municipalities and states depending on that extra revenue from interest and penalties will discover it is uncollectable if the Feds take control of the property.

Vallejo bankruptcy and firefighters union

The firefighters union wants a state bill making municipal bankruptcies more difficult after Vallejo used that as a reason to scrap its contact with firefighters.

The politics of filling the coffers out of the pockets of the wealthy

The State of Maryland and cities in the state like Baltimore and Bethesda decided to raise taxes sharply for the wealthy, figuring the rich would grin and bear it. But instead, the wealthy simply moved.


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