Increasing Taxes Resulting in More Tax Increases a Good Thing?

The MJS is supporting $800,000,000 in tax increases. 

This is true despite a cost to hospitals of about $400 million over two years, says Steve Brenton, president of the association.

That additional revenue would free up state dollars to apply to the deficit and, even more important, would allow the state to leverage more than $400 million in additional federal money over that same two-year period to pay for treating Medicaid patients.

Do they really think that those federal dollars come out of thin air?  That’s money that Wisconsinites pay too.  So, according to the MJS editorial board, having Wisconsinites pay $400 million more in taxes is a good thing because they will get about $400 million in federal dollars - part of which Wisconsinites pay too.  How will Wisconsin taxpayers benefit from this massive tax increase?