revenue sharing

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In general, any scheme for balancing taxing and spending between tiers of government, especially in federal systems. Without revenue sharing, rich regions of a country will be able to raise more than poor regions, but require to spend less. Therefore, any country in which there is pressure for redistributive politics will face pressure for revenue sharing, even if its constitution divides the power to tax among tiers of government. In particular, the term is used in the United States to denote arrangements whereby federal revenue is shared with state and local governments, with certain conditions attached.

Subjects: Sport and Leisure.

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