Template-type: ReDIF-Paper 1.0
Author-Name: Richard M. Bird
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Author-Workplace-Name: International Studies Program. Andrew Young School of Policy Studies, Georgia State University
Author-Workplace-Homepage: https://icepp.gsu.edu/
Title: Tax Assignment Revisited
Abstract:This paper first restates the lessons to be learned from Richard Musgrave’s pioneering discussion of 
the tax assignment issue.  Next, it considers subsequent developments in the theory of fiscal federalism related 
to the issue of tax assignment. Surprisingly little clear guidance is offered by the theoretical discussion when it 
comes to the practical policy issues facing any country with respect to tax assignment: what countries do seems to bear 
little relation to what theory suggests they should do. This point is illustrated this point by a brief review of 
tax assignments observed around the world in large emerging countries.  The tax assignment issue in such countries 
as India and China is both important and unduly neglected: for the most part, these are still countries in search 
(whether they know it or not) for a sustainable solution to this problem. The paper concludes with some reflections 
about what seem to be future possible -- or, perhaps better, needed -- developments with respect to both the theory 
and practice of tax assignment, again with special reference to large emerging countries.
Keywords:tax assignment; fiscal federalism; Richard Musgrave; Brazil, India, China, Nigeria, Russia
Length: 45 pages
Creation-Date: 2008-12-01
File-URL:http://icepp.gsu.edu/files/2015/03/ispwp0805.pdf
File-Format:application/pdf
Handle: RePEc:ays:ispwps:paper0805