Tax Review: The Honest Citizen’s Guide to Revenue Sharing

Download Tax Review: The Honest Citizen’s Guide to Revenue Sharing

Volume XXXII No. 10

Executive Summary
Proposals for Federal revenue sharing with the states have aroused lively debate but contradictory assumptions pro and con on the plan result only in confusion, says Dr. Henry Aaron. “We should not base our attitudes about revenue sharing on vaguely stated objectives which upon close examination are inconsistent with one another because they depend on opposite responses by state and local governments,” he says. After analyzing the contradictory claims and assumptions, he offers an alternative procedure for achieving the goal of fiscal equalization among the states.