Peggy B. Musgrave comments on John Bosson's article about foreign reactions to U.S. tax reform

Buchanan’s model of fiscal equalization, widely discussed in Canadian literature and aimed at horizontal equity across the member jurisdictions of a federation, is reexamined. The first section traces its development. The second section raises some critical issues and examines the rationale of...

Reconsiders the proposition that vertical equity is the primary norm for tax design, with horizontal equity a mere derivative therefrom. In the case of limited policy options, vertical and horizontal equity goals may conflict so that a trade-off will be needed. Independent values must then be...