Wednesday, June 15, 2005

More Budget Facts: Fed vs. State & Local

I was curious as to how much tax revenue is being collected at the federal level vs. the state and local government level. The following table shows these amounts, which are drawn from CBO (Federal) or Census Bureau (State and Local) websites. As you can see, looking a the trends since 2000, state and local tax collections have grown (15.7 percent increase), while federal collections have fallen slightly (7.2 percent decline). The percentage of taxes paid to the federal government seems to be falling, while state and local coffers have been increasing. This could be a healthy trend, to the extent that it reflects a greater level of local control over matters of taxation and finance. However, this deserves more investigation. Are state and local taxes simply rising? Is that because we're getting more services? Or is it because state and local government are taking over federal functions? It should be noted that the revenue figures here at the state and local level include only taxes, not intergovernmental revenues.

FY Federal S&L Total % Fed %S&L S&L/Fed
2000 2,025.20 872.35 2,897.55 69.89% 30.11% 43.07%
2001 1,991.20 914.12 2,905.32 68.54% 31.46% 45.91%
2002 1,853.20 904.97 2,758.17 67.19% 32.81% 48.83%
2003 1,782.30 938.97 2,721.27 65.50% 34.50% 52.68%
2004 1,880.10 1,009.26 2,889.36 65.07% 34.93% 53.68%


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