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The ‘New Federalism’ and Horizontal Equalization *
Author(s) -
GROENEWOLD NICOLAAS
Publication year - 1981
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1981.tb01063.x
Subject(s) - fiscal federalism , commonwealth , federalism , equalization (audio) , revenue sharing , economics , revenue , public economics , commission , tax revenue , political science , computer science , law , telecommunications , finance , decentralization , channel (broadcasting) , market economy , politics
Under Stage I of Australia's ‘New Federalism’ policy a given share of Commonwealth tax revenue is to be distributed to the States. This paper examines the States (Personal Income Tax Sharing) Act 1976 and proposes a concrete fiscal equalization criterion consistent with the provisions for equalization in the Act. Distribution models proposed in Mathews (1979) and Commonwealth Grants Commission (1981) are examined and shown not to satisfy this criterion. An alternative is presented.