It has long been the case that blue states have subsidized the state budgets of red states, whatever Mitch McConnell says. This presents a challenge to the traditional Republican claim to be the party of fiscal responsibility, with the low income tax rates offered by Republican lawmakers being paid for by the financial prudence of Democratic politicians. The tax structure of blue and red states will exacerbate this issue as lockdowns continue. Of the ‘Big Four’ (California, Florida, New York and Texas), the two red states are likely to see their state finances thrown into the greatest turmoil. This is because Texas and Florida make up their state budgets with sales taxes (and no one is buying anything) while California and New York rely on taxes on incomes (which will decline during coronavirus, but will not drop off altogether since most high earners are able to work from home)…

The real difference will likely be in how bailouts are portrayed in the US. While southern European economies have endured unfavorable comparisons to more financially stable northern European countries, Republicans have long falsely claimed that it is in fact red states which fund the financial recklessness of blue states. For a long time, this narrative was left unchallenged; however, in the current situations, Democrats and in particular Gov. Andrew Cuomo have publicly hit back whenever it’s been wheeled out to appease (or rile up) Republican voters. There’s a chance people will start to see beyond the spin and that the narrative may soon completely collapse.