The federal-state relationship is in the spotlight because of enormous fiscal challenges facing all levels of government. Tight budgets and a weak recovery in the wake of the Great Recession are leading to discussions about appropriate amounts of public spending and how costs should be allocated among local, state, and national government. Federal and state policy makers require solid data and analysis to engage in a meaningful debate and truly understand how their tax and spending policies affect other levels of government.
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In recent years, policymakers have approved one- or two-year extensions of the sales tax deduction as part of a broad package of temporary tax laws known as the “tax extenders.” But as of now the deduction is expired and will not be available for people to claim on their 2015 tax returns unless Congress passes the tax extenders bill. Read More
All levels of government play a role in building and maintaining our nation’s roads, bridges, and transit through a partnership in which the financial contributions are substantial and deeply intertwined. Yet over the past 10 years, the Highway Trust Fund, which pays the vast majority of the federal contribution to our transportation infrastructure, hasn’t been able to keep pace with... Read More