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●Transformation of the divisions of revenue and expenditure and the proportion of revenue sharing between the central and local governments from being fixed annually to being fixed every five years. of the receiving countries that are closely related to the degree of economic success of the immigrants themselves. The net fiscal impact of an additional immigrant is likely to be increasing in his/her level of human capital as valued in the receiving country. Higher income individuals pay more income tax, more sales tax, and are less likely to receive unemployment and social assistance benefits than are lower income individuals. This can in part explain the growing interest in high-skilled immigration in OECD countries since it is fairly easy to quantify these tax/benefit implications from a high-skilled immigrant.
literature has long held that redistribution is best conducted by national governments because of the constraints faced by decentralized jurisdictions subject to mobility of households. In fact, in a whole Tiebout model in which jurisdictions can freely enter, local redistribution cannot emerge. However, realistic models of decentralized tax competition must incorporate the empirical reality that the number of jurisdictions is indeed limited, and this constraint makes it at least conceptually feasible that local governments could engage in limited amounts of income redistribution. It is difficult, however, to get a sense of how much such redistribution might in fact be possible when the number of local jurisdictions is limited. economists have devoted considerable energy to the study of the finance of schools, largely from the viewpoint of traditional tax and expenditure policy. The educational policy component of this involves equity in the provision of education.