Policy Documents

Reverse Revenue Sharing: A Return to Fiscal Federalism

Dwight R. Lee –
January 1, 1994
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Economist Dwight Lee proposes a system for decentralizing the power to tax. A modified version of the "reverse revenue-sharing" mechanism proposed in the Articles of Confederation, Lee's plan would give the states sole authority to tax. The states, in turn, would fund a far-more-limited federal government as well as their local governments.