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Excelius t1_jcloqac wrote

There is a state budget surplus currently. It's not unique to PA, most states are enjoying budget surpluses right now.

It's likely a temporary situation due to a confluence of factors, but of course many politicians are rushing to make big changes in taxes and spending as though this will be some sort of permanent condition.

States are still sitting on piles of Federal cash, from pandemic aid to infrastructure bills. In the short term inflation leads to a bump in tax revenues, as higher wages and higher prices translates to improved tax receipts. Corporate profits are still running strong.

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TheJediJoker t1_jcm2sqj wrote

Doesn't the Federal Cash expire if not used though

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106473 t1_jcmr5rr wrote

It's fiat so it expires when the US financial system does. Which seems soon.

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