Improved Revenue Mobilization
The citizenry is more inclined to accept increased tax payments when it sees
a clear link between payment of the tax and improved government services.
When taxes are levied and collected at the central government level, that link
can be hard to see. Payments disappear into the national treasury, and the
funds get used in ways that have little identifiable consequence or impact on
the taxpayer.
The relationship can be radically different in the local fiscal structure.
The governing body levies a tax for local roads, for example: the tax is
collected locally, the money is spent on the local roads, and the citizenry can