Leviathan or Flypaper: Examining the Fungibility of Earmarked Local Sales Taxes for Transportation
Analyses of the relationships of earmarked finances on their respective programs and total expenditures have produced conflicting views of how governments spend earmarked revenue. Some show that earmarks are used in addition to existing finances to increase the total level of funding for recipient p...
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Published in | Public budgeting & finance Vol. 35; no. 3; pp. 1 - 23 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
Malden
Blackwell Publishing Ltd
01.09.2015
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Subjects | |
Online Access | Get full text |
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Summary: | Analyses of the relationships of earmarked finances on their respective programs and total expenditures have produced conflicting views of how governments spend earmarked revenue. Some show that earmarks are used in addition to existing finances to increase the total level of funding for recipient programs while others show that earmarks are fungible and program spending is unchanged. An analysis on local option sales taxes earmarked for transportation (LOST‐Ts) suggests that transportation spending is increased by more than LOST‐T revenue. For every dollar generated by LOST‐Ts, transportation spending increases by an estimated $1.76 and nontransportation spending decreases by an estimated $0.73. |
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Bibliography: | ark:/67375/WNG-LMWC01RN-6 ArticleID:PBAF12072 istex:A9ECC3064949D1925A74463D2AAB2FED4FA79B6D |
ISSN: | 0275-1100 1540-5850 |
DOI: | 10.1111/pbaf.12072 |