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Local Taxation

  • Harry KitchenEmail author
  • Melville McMillan
  • Anwar Shah
Chapter

Abstract

This chapter describes patterns of local taxation and issues in local self-finance through taxing local residents. Municipal governments rely on a variety of local taxes—mainly property, income, and sales taxes. International experience tells us that local governments are more efficient, responsible, accountable, and transparent when they raise the revenue that they spend. The best taxes are those based on benefits received with an immobile tax base that do not create problems with harmonization or harmful competition between governments and are easy to administer. This leads to a strong case for property taxation, but personal income and sales taxes may also be defended at the local level, although they are generally less effective at satisfying the criteria for a good local tax.

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of EconomicsTrent UniversityPeterboroughCanada
  2. 2.University of AlbertaEdmontonCanada
  3. 3.Governance StudiesBrookings InstitutionWashington, DCUSA

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