Fiscal Federalism in the United States

Abstract

The United States of America became the first modern federation in 1789 following the failure of the previous confederal form of government established in 1781. At its origin the federation was composed of 13 states. Since then it has expanded across the continent and evolved into a federation of 50 states. The United States survived a devastating Civil War, 1861-1865, during the first century of its existence, but still operates under the original federal constitution of 1789. It is, therefore the longest-standing federation in the world, and it serves as an important reference point in any comparative study of fiscal federalism.