Fiscal Federalism in 1986: The spotlight Continues To Swing Toward the States and Local Governments

The year in Washington saw the president and the Congress atloggerheads on the budget but in agreement on important taxlegislation. A prominent casualty of the battle to slash thefederal deficit was Revenue Sharing. "Sequestration" and therhetoric of austerity that doomed Revenue Sharing notwithstanding,total federal grants (adjusted for inflation and populationgrowth) rose in 1986 for the second year in a row, continuinga recovery from the six-year decline that had begun in 1979.The net effects of the Tax Reform Act of 1986 will vary substantiallyamong the states, but the federal legislation guarantees thattax reform will be a central issue in many state legislaturesin 1987. Federal mandates continued to be promulgated in 1986with little regard for the costs to states and localities. Anotable exception was the outcome of the struggle over fundingfor grants for the treatment facilities needed to comply withthe standards prescribed by the Clean Water Act of 1972: muchmore generous funding than was sought by the president.     

City Officials and General Revenue Sharing: Attitudes, Perceptions and Implications for Future Intergovernmental Policy

This article describes the 1972 State and Local Fiscal AssistanceAct(General Revenue Sharing), its perceived impact on city expenditures,its impact on the attitudes of city officials, and GRS's implicationfor future intergovernmental policy. Using data from nine yearsof an annual survey to chief executives in cities with over50,000 population, we conclude the program's most importantcontribution was in the general attitudes it fostered amonglocal officials. Our analysis indicates that GRS remains extremelypopular with urban chief executives and that its impact variesamong expenditure categories and cities. We conclude that theReagan administration may be able to develop viable policy alternativesbecause of the lack of consensus among many city officials whoalso exhibit varying degrees of support for the president'sproposed policies. In addition, the consensus which characterizedthe public interest groups in prior years may be eroding, andthis could create greater possibilities for policy change. ^* We would like to thank Tracey Gladstone and Eila Pakkanenfor their coding assist-ance. Ilese Hoyniak provided data processingassistance. We would like to thank Purdue University for providingcomputer time and other assistance.     

Measuring the capability to raise revenue: process and output dimensions and their application to the Zambia Revenue Authority

The worldwide diffusion of the good governance agenda and new public management (NPM) principles has triggered a renewed focus on state capability and, more specifically, on the capability to raise revenue in developing countries. However, the analytical tools for a comprehensive understanding of the capability to raise revenue remain underdeveloped. This article aims at filling this gap and presents a model consisting of the three process dimensions ‘information collection and processing’, ‘merit orientation’ and ‘administrative accountability’. ‘Revenue performance’ constitutes the fourth capability dimension which assesses tax administrations' output. This model is applied to the case of the Zambia Revenue Authority (ZRA). The dimensions prove to be valuable not only for assessing the how much but also the how of collecting taxes. They can be a useful tool for future comparative analyses of tax administrations' capabilities in developing countries. Copyright © 2007 John Wiley & Sons, Ltd.     

The Farm Crisis and the Future of Rural Local Governments

America's farmers are facing difficult financial times, andtheir problems are spilling over to rural local governments.Declining farm incomes and farm property values erode the localtax base. At the same time, demand for publicly provided servicesmay increase, creating a squeeze between falling revenues andhigher costs. This article documents the impact the farm crisishas had on local government tax bases in eight multi-countyregions in the Midwest. The impacts found, while severe, wouldgenerally be manageable in the absence of other shocks. However,when changes in the intergovernmental aid system–suchas the elimination of General Revenue Sharing and other cutsin federal aid—are factored in, local governments in agriculturallydependent areas can encounter financial stress. Higher taxesand lower service levels may permanently change the qualityof life in rural America.     

Leadership and the Transformation of a Major Institution: Charles Rossotti and the Internal Revenue Service

Charles Rossotti took the helm at the Internal Revenue Service in 1997 amid complaints of abuse of both IRS workers and taxpayers. Did he succeed at improving the agency’s image without sacrificing its principal mission to enforce the tax code fairly and effectively? This retrospective on Rossotti’s five‐year tenure suggests that he, his leadership team, and teams of IRS employees managed effective changes that substantially improved services to taxpayers and the administration of a beleaguered revenue‐collection system. His leadership offers valuable lessons and insights for administrators in all settings. Are there invaluable lessons that public administrators might learn from Rossotti’s management strategy?     

Examining Small Town Revenues: To What Extent Are They Diversified?

How diversified are small town revenues? Revenue diversification is analyzed among towns governed by town meetings. Using previously developed diversification measures, the findings confirm that these localities draw from less diverse revenue streams than other state and local governments. The reasons for these variations include differences in home rule status as well as tax and expenditure limitations imposed by states. The authors suggest that revenue allocation in these jurisdictions is substantively different from other forms of local government because these communities rely much less on sales taxation than states and municipalities. Their essay proposes possible options for improvement, along with other criteria by which small towns can assess their revenue diversification.     

Income tax concessions for owner‐occupied housing

Abstract

This article considers arguments for and against the major tax concessions for owner‐occupied housing in the Internal Revenue Code—concessions that have a significant effect on the federal budget. It recommends retaining two of the concessions— nontaxation of net imputed income and exemption of capital gains—and abolishing two others—the mortgage interest and real estate tax deductions.

After a review of the market impact of removing each deduction, the article concludes that an appropriate phase‐out period of 15 to 20 years would virtually eliminate adverse effects on house prices and homeowners.     

Two Decades of Change: A Ranking of Key Issues Affecting Intergovernmental Relations

This article describes the results of a 1981 survey of 1,000randomly selected scholars of American government and politicswho were asked to rank the most significant intergovernmentalevents and trends of the past twenty years. Responses were receivedfrom almost 40 percent of these scholars; no significant returnbiases were detected. These scholars ranked civil rights andvoting rights acts as the most significant events of these decades.General Revenue Sharing and the reapportionment cases were rankedsecond and third in importance. The increased flow of federaldollars to states and local governments was ranked the mostimportant trend affecting intergovernmental relations, followedby the increased public disaffection with government and thegrowing dependence of local governments on state and federalaid. The Vietnam War and the inflationary spiral it initiatedwas ranked as the most significant social event affecting thecourse of intergovernmental relations, followed closely by theenergy crisis and the beginnings of the "Great Society." Thearticle also examines the effects of party identification, age,year of degree, government experience, region, and city sizeon scholarly attitudes toward these events and trends. Whilethe overall rankings were not dramatically altered, partisanship,region, and city size all were factors found to be noticeablyrelated to scholarly rankings of these important events andtrends.     

Revenue authorities: are they the right vehicle for improved tax administration?

It is now well recognised that reforms to tax administration are as important as tax policy changes for overall fiscal reform. One institutional model of tax administration, which has been quite widely adopted in Africa in recent years, is that of the semi‐independent Revenue Authority. This approach is based on the executive agency model, widely adopted in the UK and elsewhere, as a way of improving performance of certain governmental functions. This article looks at the arguments for and against the Revenue Authority model, and examines a number of practical issues in the design of such an agency. It draws on the recent experience of Revenue Authorities in a number of countries. It concludes that the Revenue Authority model can offer an appropriate institutional framework for reforming tax administration, particular where low pay rates and rigid civil service systems inhibit effective management. However, Revenue Authorities do not solve all problems, and can only be expected to deliver results if they form part of a wider reform. Copyright © 2001 John Wiley & Sons, Ltd.     

BOOK REVIEWS

Book reviewed in this article:
E.N. S cott (ed.), International Perspectives in Public Administration
Towards Adaptive Federalism , Advisory Council for Inter-government Relations
B ill A llan and K eith H inchliffe , Planning, Policy Analysis and Public Spending: Theory and the Papua New Guinea Practice
S éan R éamonn , History of the Revenue Commissioners     

Book Notes

R oy F orward (ed.). Public Policy in Australia
T homas B. S mith . The New Zealand Bureaucrat.
R. and V. R outley . The Fight for the Forests.
W.K. H ancock . The Battle of Black Mountain: An Episode of Canberra's Environmental History.
J.D. T ucker . Aspects of the Brisbane City Council's Administrative Organization.
H enry P arris . Staff Relations in the Civil Service: Fifty Years of Whitleyism.
G.S. H arman . The Politics of Education: A Bibliographical Guide.
J.E. R ichardson . Patterns of Australian Federalism.
J.S.H. H unter . Revenue Sharing in the Federal Republic of Germany.
B.S. G rewal . Fiscal Federalism in India.
R.L. M athews (ed.). Fiscal Equalisation in a Federal System.
R.L. M athews and W.R.C. J ay . Measures of Fiscal Effort and Fiscal Capacity in Relation to Australian State Road Finance.
R.S. G ilbert . The Future of the Australian Loan Council.
R.L. M athews (ed.). Fiscal Federalism: Retrospect and Prospect.
D onal D e B uitleir . Problems of Irish Local Finance.
E ugene F. B righam (ed.). Readings in Managerial Finance.
O scar K raines . The World and Ideas of Ernst Freund.
Administrative Change.
The Journal of Educational Administration.
Newsletter of the R.I.P.A. (A.C.T. Group).
R.I.P.A. Bulletin (South Australian Group).
Public Policy and Administration in Australia: A Reader     

The role of tax preparers in tax compliance

This paper assesses the influence of tax preparers on tax compliance. Using data from the Internal Revenue Service's (IRS) Taxpayer Compliance Measurement Program and an index of legal ambiguity based on Revenue Rulings, the impact of preparation mode (paid third party vs. self) on compliance at the level of the return line item is probed. The results suggest that preparers contribute to compliance by enforcing legally clear requirements but also contribute to noncompliance, as measured by the IRS, by helping taxpayers take advantage of legal ambiguity. Furthermore, an analysis of a campaign to enforce estimated tax requirements conducted by the Pennsylvania Department of Revenue suggests that tax preparers are also an important network for communicating tax agency enforcement priorities to taxpayers.An earlier version of this paper was prepared for the conference on Federal/State Research sponsored by the U.S. Internal Revenue Service.     

Autonomy or organisation? Reforms in the Ghanaian internal revenue service

Autonomous Revenue Authorities (ARAs) have recently become a popular organisational reform to improve revenue collection in developing countries. The success of ARAs is commonly attributed to ‘autonomy’ which reduces political interference, and increases financial independence and managerial freedom. This article examines the case of the Ghanaian ARA – the Internal Revenue Service and argues that its strong performance is the result of not ‘autonomy’, but other more nuts and bolts reforms, specifically: (a) strategies designed to direct the focus of the IRS to different taxpayer segments, particularly the informal sector and (b) significant attempts to bring the tax administration closer to the taxpayer through decentralisation and improved taxpayer services. To the extent that autonomy enables ARAs to undertake these other reforms it forms an important piece of the picture, however, they do not require autonomy – they could well be adopted under traditional tax administrations. Copyright © 2009 John Wiley & Sons, Ltd.     

Noam Chomsky's politics

Karen J. Warren: Ecological Feminist Philosophies . Bloomington, Indianapolis: Indiana University Press, 1996.

Nicholas Low and Brendan Gleeson: Justice, Society and Nature: An Exploration of Political Ecology. London and New York: Routledge, 1998.

Robert Elliot: Faking Nature: The Ethics of Environmental Restoration. London: Routledge, 1997.

Barbara Noske: Beyond Boundaries: Humans and Animals. Montreal: Black Rose Books, 1997.

Herman E. Daly and Kenneth N. Townsend, eds.: Valuing the Earth: Economics, Ecology, Ethics. Cambridge, MA: MIT Press, 1993

Steven Mark Cohn: Too Cheap to Meter: An Economic and Philosophical Analysis. Albany: State University of New York Press, 1997.

Jesse Vorst, Ross Dobson, and Ron Fletcher, eds: Green on Red: Evolving Ecological Socialism. Winnipeg/Halifax: Society for Socialist Studies/Fernwood Publishing, 1993.     

On Sugar,Capitalism, and Socialism

Elinor G. K. Melville: A Plague of Sheep: Environmental Consequences of the Conquest of Mexico . New York: Cambridge University Press, 1994

Douglas Murray: Cultivating Crisis: The Human Cost of Pesticides in Latin America ,Austin: University of Texas Press, 1994

Wes Jackson: Becoming Native to this Place . Lexington: University of Kentucky Press, 1994.

Jeremy Brecher and Tim Costello: Global Village or Global Pillage: Economic Reconstruction From Ground Up .Boston: South End Press, 1994.

Wolfgang Sachs, editor: Global Ecology: A New Arena of Political Conflict . London and New Jersey: Zed Books and Halifax, Nova Scotia: Fernwood Publishing, 1993.

John Walton: Western Times and Water Wars: State, Culture, and Rebellion in California . Berkeley, CA: University of California Press, 1992.

Brendan Prendiville: Environmental Politics in France . Boulder, Co.: Westview Press, 1994.     

Reviews

THE ROOTS OF U.S. POLICY TOWARD LA TIN AMERICA

G. Pope Atkins, Latin America in the International Political System, second edition. (Boulder: Westview Press, 1989. Pp. 421.)

Lars Schoultz: National Security and United States Policy toward Latin America. (New Jersey: Princeton University Press, 1987. Pp. 377.)

Kevin J. Middlebrook and Carlos Rico, eds.: The United States and Latin America in the 1980s (Pittsburgh: University of Pittsburgh Press, 1986. Pp. 648. Second printing 1988.)

GENEROSITY AND SELF‐INTEREST

Teresa Odendahl: Charity Begins at Home: Generosity and Self‐interest among the Philanthropic Elite. (New York: Basic Books, 1990. Pp. 298.)

HOBBES AMONG THE PATRIARCHS

Arnold A. Rogow: Thomas Hobbes: Radical in the Service of Reaction. (New York: W. W. Norton Company, 1986. Pp. 287.)

STRACHEY AND MACLEAN: BRITISH ALTERNA TIVES

Michael Newman: John Strachey. (Manchester: Manchester Press, 1989. Pp. 201.)

B. J. Ripley and J. McHugh: John Maclean. (Manchester: Manchester University Press, 1989. Pp. 201.)     

Book Reviews

Books reviewed: Chris Rumford, European Cohesion: Contradictions in EU Integration Michael Burgess, Federalism and the European Union: The Building of Europe, 1950–2000 David McKay, Federalism and European Union: A Political Economy Perspective Dimitris N. Chryssochoou. I. B. Tauris, Democracy in the European Union Robert R. Geyer, Exploring European Social Policy Ben Rosamond, Theories of European Integration Colin Crouch, (ed.) After the Euro: Shaping Institutions for Governance in the Wake of European Monetary Union Richard Layard, The Case for the Euro Pat Thane, Old Age in English History: Past Experiences, Present Issues Stan Luger, Corporate Power, American Democracy, and the Automobile Industry Paulina Borsook, Cyberselfish: A Critical Romp through the Terribly Libertarian World of High‐Tech Charles Williams, Adenauer: The Father of the New Germany J. M. Ross, Forward to Basics—Back from the Brink: Can Humanity Rescue Itself? Larry Siedentop, Democracy in Europe Cécile Fabre, Social Rights under the Constitution: Government and the Decent Life Sebastian Reinfeldt, Nicht‐wir und Die‐da: Studien zum rechten Populismus Christa Zöchling, Haider: Licht und Schatten einer Karriere Klaus Larres with Elizabeth Meehan, Uneasy Allies: British–German Relations and European Integration since 1945     

Reply

Sandra Steingraber: Living Downstream: An Ecologist Looks at Cancer and the Environment . New York: Addison Wesley, 1997.

Rodney Barker: And The Waters Turned to Blood . New York: Simon and Schuster, 1997.

Richard Grove: Ecology, Climate and Empire: Colonialism and Global Environmental History 1400–1940 . Cambridge: White Horse Press, 1997.

Richard Primack, David Bray, Hugo Galletti and Ismael Ponciano: Timber, Tourists and Temples: Conservation and Development in the Maya Forest of Belize, Guatemala and Mexico . Washington, DC: Island Press, 1998.

Alan Weisman: Gaviotas: A Village to Reinvent the World. Chelsea Green Publications, 1998.

Pierre McDonagh and Andrea Prothero, eds.: Green Management: A Reader . London: Dryden Press, Harcourt Brace, 1997.

Vandana Shiva: Biopiracy: The Plunder of Nature and Knowledge . Boston: South End Press, 1997.     

Politische Theorie und Ideengeschichte, Politisches System der Bundesrepublik, Politische Soziologie, Vergleichende Politikforschung, Europäische Union, Internationale Politik, Historische Politikforschung

Inhaltsübersicht   (RezensentInnen in Klammern) Literaturbericht    J?rg Faust / Stefan Leiderer: Zur Effektivit?t und politischen ?konomie der Entwicklungszusammenarbeit Politische Theorie und Ideengeschichte    Bluhm, Harald, und Jürgen Gebhardt: Politische Ideengeschichte im 20. Jahrhundert. Konzepte und Kritik (Philipp H?lzing) • Dryzek, John S., Bonnie Honig und Anne Phillips (eds.): The Oxford Handbook of Political Theory (Johannes Schmidt) • Ke?ler, Mario: Ossip K. Flechtheim. Politischer Wissenschaftler und Zukunftsdenker (1909–1998) (Wilhelm Bleek) • Priester, Karin: Populismus. Historische und aktuelle Erscheinungsformen (Florian Hartleb) • S?llner, Alfons: Fluchtpunkte. Studien zur politischen Ideengeschichte des 20. Jahrhunderts (Michael Becker) • Williams, Bernard: In the Beginning Was the Deed. Realism and Moralism in Political Argument (Carsten Quesel) • Doppelrezension: Henning, Christoph: Philosophie nach Marx. 100 Jahre Marxrezeption und die normative Sozialphilosophie der Gegenwart in der Kritik; Henning, Christoph (Hg.): Marxglossar (Felix Heidenreich) • Doppelrezension: Mouffe, Chantal: über das Politische. Wider die kosmopolitische Illusion; Nonhoff, Martin: Politischer Diskurs und Hegemonie. Das Projekt "Soziale Marktwirtschaft" (André Brodocz) Politisches System der Bundesrepublik    Van Ooyen, Robert Chr., und Martin H. M?llers (Hg.): Das Bundesverfassungsgericht im politischen System (Hubert Woltering) Politische Soziologie    Dolata, Ulrich, und Raymund Werle (Hg.): Gesellschaft und die Macht der Technik. Sozio?konomischer und institutioneller Wandel durch Technisierung (Georg Simonis) Vergleichende Politikforschung    Castles, Francis G. (ed.): The Disappearing State? Retrenchment realities in an age of globalization (Marius R. Busemeyer) • Clasen, Jochen, und Nico A. Siegel (eds.): Investigating Welfare State Change: The 'Dependent Variable Problem' in Comparative Analysis (Marius R. Busemeyer) Europ?ische Union    Huget, Holger: Demokratisierung der EU. Normative Demokratietheorie und Governance-Praxis im europ?ischen Mehrebenensystem (Andreas Wimmel) Internationale Politik    Eder, Franz, Gerhard Mangott und Martin Senn (eds.): Transatlantic Discord. Combating Terrorism and Proliferation, Preventing Crises (Alexander Siedschlag) • Marx, Johannes: Vielfalt oder Einheit der Theorien in den Internationalen Beziehungen. Eine systematische Rekonstruktion, Integration und Bewertung (Ralf J. Leiteritz) • Schmidt, Siegmar, Gunter Hellmann und Reinhard Wolf (Hg.): Handbuch zur Deutschen Au?enpolitik (Helga Haftendorn) • Wolter, Detlev: A United Nations for the 21st Century: From Reaction to Prevention. Towards an Effective and Efficient International Regime for Conflict Prevention and Peacebuilding (Andreas Heinemann-Grüder) • Young, Brigitte (Hg.): Die Politische ?konomie des Dienstleistungsabkommens (GATS). Gender in EU und China (Eva Hartmann) Historische Politikforschung    Kaelble, Hartmut: Sozialgeschichte Europas 1945 bis zur Gegenwart (Siegfried Weichlein) • Doppelrezension: Andres, Jan: "Auf Poesie ist die Sicherheit der Throne gegründet". Huldigungsrituale und Gelegenheitslyrik im 19. Jahrhundert; Schwengelbeck, Matthias: Die Politik des Zeremoniells. Huldigungsfeiern im langen 19. Jahrhundert (Rainer Schmidt)