Hamilton's #70 refers to a specific rule within the Hamilton Project's policy proposal for reforming the U.S. tax code. This rule, also known as the "70/30 rule," suggests that 70% of the tax revenue collected from corporations should be allocated to the federal government, while the remaining 30% should be distributed to states and local governments.
This rule aims to address the issue of fiscal federalism by providing states and local governments with more financial resources to fund their own priorities. The Hamilton Project argues that this approach would lead to greater fiscal stability and accountability at both the federal and state levels.
Here are some key points about Hamilton's #70:
- Purpose: To promote fiscal federalism and ensure adequate funding for state and local governments.
- Mechanism: Redistribution of corporate tax revenue between federal and state/local governments.
- Ratio: 70% to the federal government, 30% to states and local governments.
- Potential benefits: Increased fiscal stability, improved accountability, and greater funding for state and local priorities.
