He who lives by the federal grant ...

Dean Stansel sent me his "Why Some Cities are Growing and Others Shrinking".  He finds that low tax rates go with better economic performance.

One of his tables lists the "Ten Highest Tax Large Metro Areas."  Stansel's measure is "State and Local Taxes as a Percentage of Personal Income, 1977-2002 Average."  The top seven of his top ten are all in the same state.  Can you guess?  It's New York.

In 2007 (the latest Census of Governments year), the State received almost 10 percent of all federal transfers, but accounted for just over 6 percent of the national population.

Keith Hennessey speculates how the Treasury will pay its bills if/when you-know-what happens.  He suggests that payments to the states will be first to stop.  Fifty governors will be pressed into action. 

He who lives by the federal grant ...