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Proposition 4, Tax Reduction Mirage: An Exploratory Note on Its Potential Spending and Tax Impacts
Author(s) -
Cebula Richard J.,
Chevlin Linda
Publication year - 1981
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1981.tb01650.x
Subject(s) - per capita , economics , california proposition 13 , legislation , proposition , state (computer science) , government (linguistics) , government spending , public economics , demographic economics , macroeconomics , political science , demography , law , mathematics , market economy , welfare , sociology , population , philosophy , linguistics , epistemology , algorithm
A bstract . What would the true government expenditure and tax‐burden impacts of California's Proposition 4 likely be if it (or its equivalent) were enacted in all states? What happened to actual state plus local government expenditures per capita over the period FY 1970 ‐ FY 1976 is examined. Next, we examine what would have happened to such expenditures (per capita) if Proposition 4 had been in effect over the same period. Comparing the results reveals that Proposition 4 would have exercised no significant impact over per capita state plus local spending levels. This implies that such legislation would not have resulted in significant tax reductions.