Posted by Jonathan Adler:
States on the Dole:
http://volokh.com/archives/archive_2009_05_03-2009_05_09.shtml#1241559055
USA Today [1]reports that state and local governments now receive more
money from the federal government than from their own taxpayers.
The sales tax had been the No. 1 source of state and local revenue
since the mid-1970s, according to the Bureau of Economic Analysis.
Before that, property taxes were the primary source. That changed
in the first three months of 2009.
Federal grants � early stimulus money plus conventional federal aid
� soared 15% in the first quarter to a seasonally adjusted annual
rate of $437 billion, eclipsing sales taxes, which fell 2%.
The dominance of federal money is set to expand dramatically this
year because tax collections are sinking while the bulk of federal
stimulus aid is just starting to arrive.
References
1. http://www.usatoday.com/news/nation/2009-05-04-fed-states-revenue_N.htm
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