Local Taxation: A 50/50 County/City Tax Split

The primary agency of taxation, and therefore of political sovereignty in the United States, should be the county, as it was prior to the U. S. Constitution.
If a city incorporates, the county government must rebate half of its revenues within the geographical boundaries of the city. This places limits on county taxation. If it gets too high, taxpayers will vote to secede.
If the city adds taxes, half of the revenues must be rebated to the county government. This places limits on city government, which keeps only half of the revenue. If city taxes get too high, voters will throw out the incumbents.

This post was published at Gary North on November 27, 2015.