The federal-state relationship is in the spotlight because of enormous fiscal challenges facing all levels of government. Tight budgets and slow economic growth are leading to discussions about appropriate levels of public spending and how costs should be allocated among different levels of 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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This report is the first in a series, Fiscal Federalism in Action, that will describe how the federal-state fiscal relationship works in several policy areas to which both levels of government make significant financial contributions. Read More
The deduction for state and local sales taxes is among a package of expired temporary federal tax provisions. If the deduction is not retroactively extended, states with the highest claim rates would be likely to feel the biggest effects. Read More