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InsiderOnline Blog: November 2012

Federal Grants Make Up Over One-Third of State Budgets

That’s as of 2010, according to a new analysis from the Pew Center on the States, based on the Census Bureau’s Survey of State Government Finances. In 2000, the figure was about one-fourth. [Pew Center on the States, October 31]

Here’s how it works: Taxpayers send a bunch of money to Washington, and then Washington sends it on to the states. But they don’t send all of it on. Some of it stays in Washington to pay the bureaucrats in charge of sending it on to the states. Also, in order to get some of that money states have to spend even more of their own citizens’ money. Finally, if taxpayers don’t like how much money they have to send to Washington, they can vote for a different congressman or different senators. Thus, each taxpaying citizen gets to vote for three of the 535 people who get to vote on how high his taxes are.

Have we spotted any problems with this plan yet?

Posted on 11/06/12 01:03 PM by Alex Adrianson

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