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But it isn't that simple. State budgets are partly funded by federal taxes. Just skimming this abstract from the CBO report[0], in 2011, 25% of state and local
by privong 12y ago
But it isn't that simple. State budgets are partly funded by federal taxes. Just skimming this abstract from the CBO report[0], in 2011, 25% of state and local government expenses were covered by federal grants amounting to over half a trillion dollars.
[0] https://www.cbo.gov/publication/43967 https://www.cbo.gov/publication/43967
- nostromo 12y agoSure, I'm simplifying, but I think my point stands. Federal tax as percent of GDP: 19% [1] State and local tax as percent of GDP: 9% [2] So, even if we bump up state and local expenditures to 11.25%, it still seems like we're getting a better deal from local governance. 1) http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=205 http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Doc... 2) http://www.ncsl.org/documents/fiscal/TaxesandtheEconomy.pdf http://www.ncsl.org/documents/fiscal/TaxesandtheEconomy.pdf (a little out of date...)
- vasilipupkin 12y agoAs explained in other comments, Federal Govt is basically a giant insurance company with an army.
- shit_parade 12y agoThis is an over simplification as some States pay more in taxes then they get in return via various federal pay outs.
- privong 12y agoSome states get less in payouts than their _residents_ pay in taxes. But the state budgets are still larger with the federal payouts than they would be with only the state taxes.