Rainy day funds (RDFs) are potentially an important countercyclical tool for states to stabilize their budgets and the overall economy during economic downturns. However, U.S. states have often found themselves exhausting their RDFs and having to raise tax rates or reduce expenditure while still...

The discrepancy between taxing and spending -- The politics of taxing -- Raising taxes -- Cutting taxes -- The politics of spending -- The growth of government spending -- Reducing spending -- Deficits and the american democracy