The Effects of Intergovernmental Grants on State Taxes

The Effects of Intergovernmental Grants on State Taxes

State and Local Policy Project

The Mercatus Center is hosting a breakfast roundtable discussion with Dr. Russell Sobel of West Virginia University and the Mercatus Center on his recent paper, “Do Intergovernmental Grants Create Ratchet Effects in State and Local Taxes?” This paper addresses the question of whether federal funding in a given year results in states beginning new spending programs that then in the future require own-source revenue through state taxes to continue to fund them. 

During this discussion Dr. Sobel will address:

  • If federal grants like the American Recovery and Reinvestment Act (ARRA) can actually increase state and local taxes.
  • Whether intergovernmental grants create a permanent ratchet in the size of state and local governments in the United States.
  • The long term implications of federal funding to the states.

Breakfast provided

For more information about this event please contact Kathleen O’Hearn at kohearn@gmu.edu or at (703) 993-8426

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