Accession Number : ADA094950


Title :   The Equity Effects of Restraints on Taxing and Spending,


Corporate Author : RAND CORP SANTA MONICA CA


Personal Author(s) : Menchik,Mark David ; Pascal,Anthony H


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a094950.pdf


Report Date : May 1980


Pagination or Media Count : 32


Abstract : This paper derives from Rand research that was stimulated by California's passage of Proposition 13. We learned two lessons early in our research. First, Prop. 13 was a manifestation of a process that extends far beyond a single law in a single state. We call this process 'fiscal containment'--a moderation of rapid growth in government that means a less prominent role for government in the economy and society. Most Americans seem to favor containment of government and, more and more, are electing officials who promise to act accordingly. The second lesson is that fiscal containment may have equity effects--consequences that especially benefit some population groups and especially hurt others. At each level of government (federal, state, and local) the rate of growth in spending has fallen to about half what it was previously, with a sharp change during the 1970s. Containment has several well-known positive consequences, of course: It puts money in the taxpayers' pockets; it seems to stimulate local economies; it may promote the efficiency and responsiveness of government. This paper, however, will concentrate on some of the possible adverse effects, many of them unexpected even by opponents of the fiscal containment movement.


Descriptors :   *ECONOMIC ANALYSIS , *FEDERAL BUDGETS , *TAXES , UNITED STATES GOVERNMENT , GOVERNMENT PROCUREMENT , GROWTH(GENERAL) , LIMITATIONS , ADVERSE CONDITIONS , RESTRAINT , COMPENSATION , REGULATIONS , FINANCE , BALANCES , REVENUE SHARING , GOVERNMENT EMPLOYEES


Subject Categories : Administration and Management
      Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE