A giant deficit sparks talk of a giant tax increase in Illinois, as well as talk of a federal...

|By:, SA News Editor

A giant deficit sparks talk of a giant tax increase in Illinois, as well as talk of a federal bailout for strapped states. If Congress says no deal, it could slow economic growth. If it agrees to help, there's risk of bond vigilantes and moral hazard. Illinois and other big states might argue: "Our short-term needs would amount to only a fraction of what we have handed to other states in the past."