United States
Despite considerable differences in the abilities of states to generate revenues, there is no federal program in the United States that aims explicitly at reducing the disparities in state fiscal capacity. Certain federal-state transfers, however, do contain equalizing elements. For instance, some formula grants consider a state's personal income in determining levels of federal support. However, most federal grant programs require that each state receive at least .5% of the grant money regardless of population, so large states end up subsidizing small states, thus enabling the small states to have low or no income taxes.
Some grant programs are consistently equalizing, such as education programs aimed at the disadvantaged, food and nutrition programs and, for the most part, Medicaid. In aggregate, however, U.S. federal grants do little to reduce horizontal fiscal imbalances. With the responsibility for public goods and services scattered over three levels of government (federal, state, and local), the U.S. system of intergovernmental transfers responds foremost to the needs determined by the various grant programs.
Read more about this topic: Equalization Payments
Famous quotes related to united states:
“In the United States, though power corrupts, the expectation of power paralyzes.”
—John Kenneth Galbraith (b. 1908)
“It is said that the British Empire is very large and respectable, and that the United States are a first-rate power. We do not believe that a tide rises and falls behind every man which can float the British Empire like a chip, if he should ever harbor it in his mind.”
—Henry David Thoreau (1817–1862)
“I have ever deemed it fundamental for the United States never to take active part in the quarrels of Europe. Their political interests are entirely distinct from ours. Their mutual jealousies, their balance of power, their complicated alliances, their forms and principles of government, are all foreign to us. They are nations of eternal war.”
—Thomas Jefferson (1743–1826)
“Steal away and stay away.
Don’t join too many gangs. Join few if any.
Join the United States and join the family
But not much in between unless a college.”
—Robert Frost (1874–1963)
“The Federated Republic of Europe—the United States of Europe—that is what must be. National autonomy no longer suffices. Economic evolution demands the abolition of national frontiers. If Europe is to remain split into national groups, then Imperialism will recommence its work. Only a Federated Republic of Europe can give peace to the world.”
—Leon Trotsky (1879–1940)