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They do, to some extent. See this link for example[1]. But states are constrained in ways that the federal government is not.

The main difference is that the federal government can 'print money' to fund spending (the most recent tax cuts were essentially funded that way) and hope that long term economic growth from the policy change negates the increased deficit.

The second reason is that the Federal government takes more of the tax pie than states do. According to this link[2], the federal government gets 65%, states take 20%, and cities/municipalities 15%. And keep in mind that a good chunk of the federal money goes back to the states via federal programs. So if you are going to target your policy initiatives, might as well aim for the biggest slice of the pie.

[1] https://www.chs-ca.org/child-care-payment-program [2] https://www.taxpolicycenter.org/briefing-book/what-breakdown...



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