134k views
5 votes
Have spending and taxes by state and local governments in the United States had a generally upward or downward trend in the last few decades?

a) Upward trend
b) Downward trend
c) Stable trend
d) Fluctuating trend

User Simon Ji
by
8.1k points

1 Answer

3 votes

Final answer:

State and local government spending and taxes in the U.S. have exhibited an upward trend in the last few decades, similarly to federal government spending. Education spending at the state and local level exceeds that of the federal level, and foreign aid constitutes a minor part of federal spending.

Step-by-step explanation:

Trends in State and Local Government Spending and Taxes

Spending and taxes by state and local governments have generally had an upward trend over the last few decades in the United States. Despite fluctuations due to economic cycles and policy changes, both spending and revenue collection through taxes have increased as governments expanded services and responded to population growth and inflation. In contrast, federal spending and tax revenues have also seen a rising trend, with a substantial growth in federal spending over recent decades.

It is also important to note that while federal spending on education may be significant, it is actually state and local governments that shoulder the larger share of education funding. Moreover, questions about state and local spending rarely include that defense spending, primarily a federal responsibility, has varied with different levels historically but isn't necessarily higher now than ever before.

Finally, while it is a common misconception that foreign aid constitutes a large portion of federal spending, it actually represents a very small fraction. The assertion that the share of the economy going to federal taxes has increased substantially over time is also debated, as this can depend on various factors including changes in tax law and economic conditions.

User Ilkerkaran
by
8.3k points