ERIC Number: ED237694
Record Type: RIE
Publication Date: 1983-Sep-9
Reference Count: 0
Information Regarding the Effect of Applying the Representative Tax System to the General Revenue Sharing, Medicaid, and Vocational Education Programs.
General Accounting Office, Washington, DC.
The General Accounting Office assessed the likely impact of replacing personal income with the Representative Tax System (RTS) on the distribution of federal aid among the states in three formula-based programs. These programs were the General Fiscal Assistance Act of 1972, known as the Revenue Sharing program; Title XIX of the Social Security Act, known as Medicaid; and the Vocational Education Act of 1963. The analyses indicated that if replacing personal income with the RTS were the only change made in the three formulas, federal funds would be redistributed away from states with high revenue raising potential from nonincome revenue sources. These were primarily states with relatively high energy production and, to a lesser extent, high property values and retail sales. However, the rationale for replacing personal income with the RTS would argue in favor of additional formula changes as well. When additional formula changes were considered, no general distributional pattern emerged. This was because the distributional outcome was sensitive to which program was being considered and to precisely what other formula changes would be likely to be made. Appendixes present data tables with results of the analyses. (YLB)
Descriptors: Federal Aid, Funding Formulas, Public Agencies, Public Service, Revenue Sharing, State Aid, Tax Allocation, Taxes, Vocational Education
U.S. General Accounting Office, Document Handling and Information Services Facility, P. O. Box 6015, Gaithersburg, MD 20760 (First five copies--free; additional copies--$3.25 bound, $1.00 unbound; checks should be made payable to the "Superintendent of Documents.")
Publication Type: Reports - Research
Education Level: N/A
Audience: Policymakers; Practitioners
Authoring Institution: General Accounting Office, Washington, DC.
Identifiers: Medicaid; Representative Tax System; Revenue Sharing Program; Vocational Education Act 1963