Tax reform and federal subsidy of the state-local sector

This report explains the economic rationales for Federal subsidy of public spending by the State-local sector and evaluates the changes in deductibility of State-local taxes proposed by the Treasury, Bradley-Gephardt, and Kemp-Kasten tax reform plans for consistency with these rationales.,Abstract -- Introduction -- Federal Subsidy of State-Local Provision?. What Justifies State-Local Provision? ; Why Should the Federal Government Subsidize State-Local Provision? ; Identifying the State-Local Goods to be Subsidized -- Is State-Local Tax Deductibility Consistent with the Economic Rationales for Federal Subsidy?. History of State-Local Tax Deductibility ; Eliminating Deductibility of All Taxes ; Eliminating Deductibility of Selected Taxes -- Conclusions.,Dennis Zimmerman, Specialist in Public Finance, Economics Division.,CRS 85-515 E,"January 28, 1985.",SuDoc# 14. 18/3