Why might federal government nonetheless in better position


Problem

In the past, the federal government provided general revenue-sharing. The argument for general revenue-sharing was that the federal government was in a better position to collect tax revenues. States may, however, simply impose a tax which is based on the individual's federal income tax; that is, they could impose a tax which is, say, 20 percent of the federal tax payment. Provided that the federal government shares its information about where individuals live and what taxes they have paid, there would then be little incremental cost of tax collection, either to individuals or the state. Why might the federal government nonetheless be in a better position to collect tax revenues than the states?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why might federal government nonetheless in better position
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