The Effects of Intergovernmental Grants on State Taxes
The Effects of Intergovernmental Grants on State Taxes
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.