Allowing states to declare bankruptcy would end federalism and convert states into wards of the federal government, claimed John Baker, professor emeritus of law at Louisiana State University and Federalist Society contributor, offering his analysis on Friday’s edition of SiriusXM’s Breitbart News Daily with host Alex Marlow.
On Wednesday, Senate Majority Leader Mitch McConnell (R-KY) expressed support for allowing states to use bankruptcy to discharge certain liabilities. “I would certainly be in favor of allowing states to use the bankruptcy route,” he said. “It saves some cities, and there’s no good reason for it not to be available.”
“[Mitch McConnell] is suggesting amending the bankruptcy code to allow states to go into bankruptcy court and go through a process the way that cities and other municipalities are able to do under a chapter of the bankruptcy code,” said Baker. “There are good reasons why states cannot do this and should not ever be able to do it.” ….
Flanked by (from left) Seema Verma, Administrator of the Centers for Medicare and Medicaid Services; Marjorie Dannenfelser, President of the Susan B. Anthony List; Representative Diane Black (R-TN 6th District); Penny Nance, CEO and President of Concern Women for America; and President Donald Trump pose for a photo after signing Title X, “the Congressional Review Act,” in the Oval Office, Thursday, April 13, 2017. (Official White House Photo by D. Myles Cullen)