Congress averted the much-feared “fiscal cliff” late Tuesday, passing a legislative package to be signed promptly by President Obama.  The deal answered a few burning questions for state governments, but many still linger.

By choosing Paul Ryan as his running mate, Mitt Romney has endorsed large changes in federal-state relations, particularly in dealings with food assistance and health care.

ECONOMY & BUSINESS BEAT: When Standard & Poors downgraded the federal government's credit rating last year, it also caused problems for municipalities in Colorado, where a unique state law governs local investments. more

TODAY'S TAKE: Residents of seven states without an individual income tax are watching the budget debate on Capitol Hill to see whether they will be able to keep writing off state sales taxes on goods they purchase. more

This paper, written by the Tax Policy Center (TPC) and sponsored by the Pew Fiscal Analysis Initiative, examines the impacts of different VAT bases and how they vary among income and age groups.