Public Budgeting & Finance · 1989 · 42 citations · 0 references
LawPolitical SciencePublic PolicyProperty TaxationState TaxationTaxationFiscal HistoryProperty TaxState Tax PolicyTax ReformAppropriations LimitationsExpenditure LimitationsState Property TaxationState Spending ConstraintsState-imposed Tax LimitsTax Policy HistoryTaxation HistoryWelfare State Spending
In the late 1970s, economic turmoil sparked discontent with government and taxation, leading to a national unease that culminated in Reagan’s 1980 election and promises of reduced government and lower taxes. The tax revolt led to local property‑tax limits such as California’s Proposition 13 and statewide tax‑and‑expenditure limitations (TELS) adopted before 1983, mainly in the West, with state economic conditions and anti‑tax sentiment driving spending limits more than formal restrictions.
Out of the troubled economic atmosphere of the late 1970's grew a discontent with government in general and taxation in particular. The tax revolt took hold at the local level and placed limits on the growth of the property tax through celebrated citizen initiatives like Proposition 13 in California. At the national level, uneasiness with the role of government and a sense that taxation was too high culminated in 1980 with the election of Ronald Reagan. The electorate embraced promises of less government and lower taxes. For states, the tax revolt resulted in a number of state tax and expenditures limitations (TELS). Most had several things in common: they were adopted before 1983, they addressed state appropriations, and they were largely a western phenomenon spreading from California. The overall condition of state economies and structure of state tax systems, in combination with the sensitivity of policymakers to anti‐tax sentiment, have done more to limit state spending than have imposed restrictions.