The States Love The Feds

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Well, it was bound to happen:

In a historic first, Uncle Sam has supplanted sales, property and income taxes as the biggest source of revenue for state and local governments.

The shift shows how deeply the recession is cutting. Federal stimulus money aimed at reviving the economy and a sharp drop in tax collections have altered, at least temporarily, the traditional balance of how states, cities, counties and schools pay for their operations.

Who would have expected that in times of crisis the central state grows stronger?

12:09 pm on May 6, 2009