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A Comparison of Fiscal Consequences for Tax and Expenditure Limitation Proposals
Author(s) -
Edelman Mark A.
Publication year - 1999
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349979
Subject(s) - revenue , property tax , state (computer science) , economics , local government , government (linguistics) , public economics , government revenue , direct tax , government expenditure , tax revenue , indirect tax , public finance , value added tax , business , finance , tax reform , macroeconomics , public administration , political science , linguistics , philosophy , algorithm , computer science
Abstract Three constitutional tax and expenditure limitation proposals are analyzed for historical consequences. The first and second allowed 32% less state spending and $710 million less in local government aid compared to actual. The first proposal also imposed limits on local government units and allowed property taxes to increase about 5% more than actual. The second proposal covered state revenues only and would have required a 29.7% increase in property taxes to fully replace the reduction in local government aid. A third proposal excluded local government aid but effectively covered only half of the state general fund revenues.