commission on fiscal imbalance 合集

The greatest increase since the war has been at the

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Unformatted text preview: e Table 2). Federal revenue increased significantly during World War II and has remained at nearly the same level as a share of GDP since. Local and state revenue, on the other hand, has risen steadily as a share of GDP since World War II. As a result, state and local governments consistently generated a greater share of revenues than the federal government until World War II and have provided a lower share thereafter (See Table 3). The greatest increase since the war has been at the state level, where revenues are about one-half larger as a share of GDP. TABLE 2 NUMBER OF GOVERNMENTS Total 1934 1940 1946 1952 1957 1962 1967 1972 1977 1982 1987 1992 1994 1995 1996 1997 1998 16.2 16.6 26.8 27.1 27.1 27.7 29.5 30.1 31.5 34.1 34.4 34.9 34.6 35.1 33.9 34.5 35.2 Federal 5.9 6.9 20.9 20.0 18.9 18.1 19.3 18.0 18.8 21.0 20.0 19.9 19.8 20.0 18.5 19.0 19.5 State 3.6 4.7 3.1 3.7 4.3 4.9 5.4 6.6 7.5 7.9 8.6 9.0 8.9 9.2 9.5 9.6 9.7 Local 6.8 5.0 2.8 3.3 4.0 4.7 4.7 5.4 5.2 5.2 5.7 6.0 5.9 5.9 6.0 5.9 6.0 TABLE 3 DISTRIBUTION OF GOVERNMENT REVENUES Total 1902 1913 1922 1927 1934 1940 1946 1952 1957 1962 1967 1972 1977 1982 1987 1992 1994 1995 1996 1997 1998 16 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Federal 40.0 33.6 47.1 38.2 36.3 41.7 78.0 73.9 69.6 65.4 65.7 59.9 59.7 61.7 58.3 57.0 57.2 57.0 54.6 55.0 55.3 State 11.1 12.6 13.6 17.0 22.1 28.2 11.6 13.8 15.7 17.8 18.5 22.1 23.9 23.1 25.1 25.7 25.8 26.3 27.8 27.9 27.6 Local 48.9 53.8 39.3 45.5 41.7 30.2 10.4 12.3 14.6 16.8 15.9 18.0 16.4 15.2 16.6 17.3 17.0 16.7 17.5 17.1 17.1 Commission on Fiscal Imbalance 3.1. Constitutional Limitations over State Revenue Collections The federal and state governments generally have considerable independence in their ability to raise revenues. The U.S. constitution prohibits state taxation in two ways: states cannot tax interstate or international commerce. The limitation on states’ ability to tax interstate commerce is an increasingly important issue as multi-state production and distribution and cross state sales are all growing very rapidly. The U.S. constitution specifically places control over interstate commerce, and in this context taxation, in the hands of Congress. Thus, Congress can define what constitutes interstate commerce and the extent to which states can tax it. The corporate income, sales and individual income taxes are all increasingly affected by interstate activities. To-date, Congress has been hesitant to provide states with a reasonable structure in which to tax firms that exploit state economies, through mail order, electronic commerce, and other types of cross border sales. Congress has been content to allow a Supreme Court ruling that says firms are only required to collect sales taxes on behalf of a state if the firm has physical presence in the state. Further, Congress imposed a moratorium that precludes taxes on access to the Internet. The moratorium is set to expire...
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