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Show 131 supply and bus transportation. Certain forms of direct taxation are appropriate for financing services whose benefits cannot be confined to individual consumers but do not extend beyond the boundaries of individual subnational jurisdiction. A property tax, for example, can be an appropriate way to finance local police services. In the same way that user as water allow individuals to express their demand for services whose benefits are largely private, such taxes enable taxpayers to express their demand for local services that are consumed collectively. (Burki et al. charges 1999, pp. 26-27) Moreover, distributional consideration may require that the uniform rate. Taxes some form of uniformity is It also be might countries to control the such incomes have on authority. significant usually maintained, It may be for there is prudent, in terms of, for though even a example, developing the federal government often abuses need to monitor the behavior of lower necessarily when The federal government may also need to raise revenue their tax policy. in order to pursue the overall goal of a tax rate. units of government, who may not they design at distributional consequences and thus for the federal government in politically prudent major tax bases, tax be centralized act in the interest of the national economy equity in resource more provision. Indeed, given the fact that there is significant differential among lower units of governments in developing countries, it is justified that the federal government has more revenue sources in economic in order to resources bring and taxing capacity about balanced regional development. This needs to be qualified, lower level governments be spending policies, however. Successful decentralization given genuine independence but also in terms of taxing power. In fact, not only requires that in terms of their |
