Fiscal Federalism 13: The Impact of Federal Aid on Oklahoma

Free Money from Uncle Sam and Unintended Consequences in Oklahoma

Continuing on the theme about federal aid to the states, here is my latest article–“‘Free Money’ and Unintended Consequences”–in the Perspective magazine published by the good folks at the Oklahoma Council of Public Affairs.  Here is the money line:

There is no such thing as “free money” from Uncle Sam. Absent the recent run-up in federal grants to Oklahoma—which has spurred higher state spending—Oklahoma nearly would have been able to eliminate its individual income tax.