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When we think of government services that touch our everyday lives, such as maintaining roads and bridges, law enforcement, operating our schools and universities, picking up the trash, protecting the public health and providing for parks and recreation, the vast majority of those services are the responsibility of state and local government. Nonetheless, about a quarter of the funds that sustain those services come from the federal government. That is why the prospect of major federal cutbacks is so important.

When the president and Congress pick local governments to bare the brunt of fiscal discipline, they impact on a wide array of daily services that nearly all of us rely on. They force up the amount that people must pay for services such as tuition at state colleges and universities. They also put greater upward pressure on state and local taxes. Federal tax cuts that lead to reduced support for state and local governments, and ultimately to higher sales taxes and property taxes, leave most taxpayers worse off. Only the very wealthy who receive huge breaks in the form of reduced income tax rates and elimination of estate taxes will be net winners. That probably includes the bulk of those who traveled to Washington to attend inaugural festivities a few weeks ago, but the vast majority of taxpayers (in both red states and blue states) will be worse off.