ERIC Number: ED189691
Record Type: Non-Journal
Publication Date: 1980-May
Reference Count: N/A
The Equity Effects of Restraints on Taxing and Spending.
Menchik, Mark David; Pascal, Anthony H.
The passage of California's Proposition 13 is the best known incident in the process that can be labeled "fiscal containment." This process, resulting from a shift in the mood and the demands of the entire nation's electorate, involves a moderation of rapid growth in government and means a less prominent role for government in the economy and the society. The principal means for achieving fiscal containment are the election of fiscally conservative government officials and the revision of traditional taxing patterns, especially at the ballot box. Since property taxes are the most common target of voters, tax reductions usually benefit the property-owning class. Reductions in government services and layoffs of government workers follow, and tend to hurt the less well-off, less organized members of society. Attempts to recoup revenue losses through such means as user fees tend to be regressive while the property taxes had been progressive. Some major effects of fiscal containment are to limit government's role in the redistribution of wealth and to slow the movement toward social equity for minorities. (Author/PGD)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Rand Corp., Santa Monica, CA.
Identifiers - Laws, Policies, & Programs: Proposition 13 (California 1978)