Stimulus Money Costs States a Fortune **Corrections**

**Correction** A commenter correctly pointed out that I’m an idiot. It will cost Nebraska $1.2 million for $1.5 billion. Thanks, and I apologize for my stupidity**

Nebraska must pay $1.2 million in order to receive $1.5 million from the federal stimulus crap sandwich according to MSNBC (link fixed) and the Associated Press.

The costs are related to federal oversight regulations required to receive the money. Apparently, the shovel-ready jobs are for accountants and lawyers, not laborers.

Government is Inefficient

This example perfectly illustrates the inefficiency of government. The $1.5 million billion is a loan, not a gift. Nebraska’s taxpayers will repay that money, either through higher taxes or inflation, what Ronald Reagan called the cruelest tax of all. But the cost of borrowing that money is $1.2 million, meaning Cornhuskers will get a net benefit of only $300,000. No CFO would make that deal, but most governors will.

A Conservative Alternative

A conservative stimulus bill would have let CFOs and small business owners decide the best use for the money. By cutting the capital gains tax to zero and the corporate income tax to 12.5 percent (same as Ireland), businesses would attract equity (which doesn’t have to be paid back) and cut losses or increased profits. With more money in the bank, companies would do what they’ve always done: take risks on innovation, expansion, and more employees. In turn, those new employees would spend more, continuing the cycle.

Take Action

Write your Representative and Senators today. Tell them to repeal the misguided stimulus bill before your state goes broke.