Tax

Federal Housing Policy and the Rise of Nonprofit Providers

Federal Housing Policy and the Rise of Nonprofit Providers
Journal for Housing Research, 11(2):297-317.

O'Regan, K. & Quigley, J.M.
01/01/2000

During the past decade, federal housing policy has shifted to recognize a key role for nonprofit housing providers in providing affordable housing. Two federal programs, Low-Income Housing Tax Credit and HOME, are now the primary federal housing production programs, and the legislation governing both programs provides explicit support for nonprofit providers of new housing. This article focuses on these two programs to document the change in emphasis, looking at the extent to which resources flow to nonprofit providers. We explicate the rationale for this shift and speculate on future federal policy toward nonprofits.

We find that both programs channeled sizable shares of their funding to nonprofits throughout the 1990s, in patterns consistent with program design. It is also possible that the scale and form of funding itself has affected the nonprofit sector. Changes in the funding of nonprofits have not been uniform spatially, and the nonprofit sector's share of such funding appears to have leveled off. As currently structured, these programs do little to simplify the complicated financial dealings and multiple sources of funding common among nonprofit housing providers. Shifts in policy priorities and emerging financial stresses may necessitate changes in federal policy toward the nonprofit sector.

 

No Easy Answers

No Easy Answers
Brookings Review, Summer 2000, Vol. 18 Issue 3, p44, 4p.

Ellen, I.G. & Schwartz, A.E.
01/01/2000

Discusses the strategies applied to foster economic growth among cities in the United States. Measurement of the impact of economic development programs; Effectiveness of infrastructure investments to boost economic growth; Impact of tax cuts on economy; Development of sports stadiums and arenas.

On the Progressivity of the Child Care Tax Credit: Snapshot Versus Time-Exposure Incidence

On the Progressivity of the Child Care Tax Credit: Snapshot Versus Time-Exposure Incidence
National Tax Journal, March, pp 55-71.

Schwartz, A.E. & Altshuler, R.
01/01/1996

We evaluate the progressivity of the federal Child Care Tax Credit using the Ernst and Young/ University of Michigan panel of tax return data. Incidence measures are calculated using both annual and "time-exposure" income to measure ability to pay. Both indicate that the benefits of the credit are progressively distributed. Replacing annual with time-exposure income dramatically increases the proportion of the credit received by lower-income taxpayers and yields a more even distribution of benefits across middle- and upper-income taxpayers. Our results suggest that policymakers should use both income measures to evaluate the credit.

Decentralization, Externalities, and Efficiency

Decentralization, Externalities, and Efficiency
Review of Economic Studies 62, April 1995, 223-247.

Morduch, J. Klibanoff, P.
01/01/1995

In the competitive model, externalities lead to inefficiencies, and inefficiencies increase with the size of externalities. However, as argued by Coase, these problems may be mitigated in a decentralized system through voluntary coordination We show how coordination is limited by the combination of two factors: respect for individual autonomy and the existence of private information. Together they imply that efficient outcomes can only be achieved through coordination when external effects are relatively large Moreover, there are instances in which coordination cannot yield any improvement at all, despite common knowledge that social gains from agreement exist This occurs when external effects are relatively small, and this may help to explain why coordination is so seldom observed in practice. When improvements are possible, we describe how simple subsidies can be used to implement second-best solutions and explain why standard solutions, such as Pigovian taxes, cannot be used. Possible extensions to issues arising in the structure of research joint ventures, assumptions in the endogenous growth literature, and the location of environmental hazards are also described.

Evaluating the Success of Need-Based State Aid in the Presence of Property Tax Limitations

Evaluating the Success of Need-Based State Aid in the Presence of Property Tax Limitations
Public Finance Quarterly, Oct 92, Vol. 20 Issue 4, p483, 16p.

Reschovsky, A. & Schwartz, A.E.
10/01/1992

Discusses the use of grants-in-aid to reduce fiscal disparities by local governments in the United States. Method used in Massachusetts to account for differences among communities in fiscal costs and resources; Indepth look at expenditure determination in tax limitations; Estimation of local government expenditures.

Taxing Over Tax Limits: Evidence from the Past and Policy Lessons for the Future

Taxing Over Tax Limits: Evidence from the Past and Policy Lessons for the Future
Public Administration Review, Jul/Aug 1981, Vol. 41 Issue 4, p445-453, 9p

Hickam, D., Berne, R. & Stiefel, L.
07/01/1981

It is generally thought that across-the-board tax limits, white encouraging fiscal restraint, create hardships for jurisdictions with above average and uncontrollable needs. Because of the recent imposition of most limits, the conclusion is difficult to confirm empirically. This article provides a test of the conclusion based on a study of New York State city school districts where limits long in effect were suspended between 1970 and 1978 because of unusual local behavior and legislative action. Because some, but not all, districts took advantage of legislatively granted authority to tax beyond their limit, art empirical investigation can be used to explain this behavior. The results of the analysis, which show that low ability to pay, low inter-governmental grants, and high needs account for much of the behavior of districts that exceed limits, are helpful in designing flexible tax limits.

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