Write-Off: The Tax Blog

What to do when the government has too much money?

Friday February 18, 2022 • Jeff Hoopes, UNC

At the beginning of the pandemic, we thought state finances would be crushed. Then, as time progressed and we understood what the pandemic would do for sales taxes, that the federal government would be shoveling newly minted money to the states, etc., and it became clear that many states would not struggle financially. And, indeed, some states are mulling the possibility of cutting taxes to give back the extra money they have (and the problem that some federal aid seemed to preclude cutting taxes). I was reminded of this age old problem with what to do with government “surpluses” recently as I was reading the April 25, 1891 edition of Punch magazine, as one does, and saw this amazing poem, and, accompanying graphic:


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