S&P Tells Us Nothing
It’s doubtful that Standard & Poor’s revision of America’s credit-rating outlook from stable to negative will be of much help to Republicans.
I’ve got a piece up at City Journal reminding fiscal observers that on state and local debt, S&P and its rivals have a long history of viewing big tax hikes as a sign of bold political leadership.
In January, after Illinois hiked personal and corporate taxes to address its budget deficit, S&P removed the Prairie State from a negative “watch” (a more serious condition than the new negative “outlook” on the U.S.).