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Financial Coercion

Talbert Black, December 12, 2011December 12, 2011

Financial Coercion

How the federal government decides who receives unemployment benefits

Last month, we highlighted various ways in which South Carolina finds itself using state tax dollars for federal priorities. Usually what happens is this: The federal government promises the state money on the condition that the state pay a sizeable proportion of the costs, and state lawmakers – usually incapable of turning down federal money – happily play along.

Sometimes, though, Washington takes a different approach. In these cases, the federal government offers the state a massive pot of federal cash but won’t transfer the funds until the state changes its laws according to federal demands.

One of the most egregious examples of this kind of financial coercion happened in 2009.

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Budget Economic Policy South Carolina Policy Council Taxes

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