Fiscal Federalism: Spending and Taxes Argumentative Essay by Nicky

Fiscal Federalism: Spending and Taxes
A discussion opposing unconditional aid systems.
# 128594 | 1,300 words | 5 sources | APA | 2010 | US

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This paper presents some of the reasons which make Federal-State and State-local unconditional aid systems an undesirable solution. The paper begins by defining and giving a brief background of unconditional aid programs. Then it goes on to discuss why unconditional aid is no longer popular, citing various reasons for this. The author gives various suggestions for state and local governments to develop their funding, such as organizing their incomes into two categories: current operating capital and capital component. Other possibilities are developed as well. The paper concludes by stating that unconditional aid programs are rarely used today.

Unconditional Aid Systems
A Case against Unconditional Aid Systems

From the Paper:

"However, there are situations in which these funds are insufficient - a relevant exemplification of this scenario was offered by the 2001 economic recession. The measures to be implemented in such instances depended on the relations policies favoured by each institution. Otherwise put, there are two alternatives: the federal institution could increase the fund of the state one and the state institution could consequently increase the funds of the local agencies. Despite the favourable feedback retrieved for the implementation of such a measure, fact remains that unconditional aid systems pose severe disadvantages on both institutions and communities. "

Sample of Sources Used:

  • Penner, R.G., June 10, 2008, Budgeting for Capital Investment, Statement before the House of Representatives Committee on Transportation and Infrastructure
  • Rueben, K., McGuire, T., Kellam, S., October 2007, Navigating State and Local Finances, Lincoln Institute of Land Policy
  • Rueben, K., Rosenberg, C., April 28, 2008, State and Local Tax Policy: What are rainy day funds and how do they work? Tax Policy Center
  • Woolley, J., Peters, G., 1999, Richard Nixon, The American Presidency Project, last accessed on November 14, 2008
  • 2006, Revenue Sharing, Gerald R. Ford Presidential Library and Museum, last accessed on November 14, 2008

Cite this Argumentative Essay:

APA Format

Fiscal Federalism: Spending and Taxes (2010, July 28) Retrieved March 08, 2021, from

MLA Format

"Fiscal Federalism: Spending and Taxes" 28 July 2010. Web. 08 March. 2021. <>