Magazine May 28, 2018, Issue

Degenerate Federalism

Amazon real-estate vice president John Schoettler (Lindsey Wasson/Reuters)
In practice, federalism has become largely a way of bilking U.S. taxpayers

Over the past few months, states and cities have been competing for the privilege of hosting Amazon’s second headquarters. To this end, Maryland has pledged a “blank check” in transportation spending tailored to the company’s needs, New Jersey has enacted bipartisan legislation to provide Amazon $7 billion in tax credits, and Chicago is proposing to give the company $1.32 billion in personal income taxes paid by its workers. But residents of those localities concerned about a “winner’s curse” shouldn’t worry — taxing and spending by state governments is now heavily subsidized by federal taxpayers.

This practice of cost shifting has produced

To Read the Full Story

In This Issue

Articles

Features

Books, Arts & Manners

Sections

The Week

The Week

We propose a total and complete shutdown of New York attorneys general until we can figure out what the hell is going on.

Recommended

The Latest