Show Tax Sharing Will Aid Wealthy States The rich states would get richer and the poor states would get poorer under the revenue sharing bill passed by the U.S. House of Representatives and awaiting action in the U.S. This is the conclusion reached by Utah the private tax in their analysis of the proposed ACCORDING to the analysis of the bill which cleared the House on June eight of the twelve states with the highest per capita incomes would receive per capita revenue sharing allocations above the U.S. Eleven of the twelve states with the lowest per capita incomes in the on the other would receive per capita allocations below the U.S. average if the bill is enacted into The average per person share going to the ten highest-income ALTHOUGH the proposed revenue sharing formula generally favors the heavily populated industrial Utah would fare relatively well under the House plan even though it is one of the The Foundation report notes that Utah is the only state ranking among the lower third in per capita income that would receive a per person allocation above the U.S. The bill would give Utah approximately million or per For the entire United the average allocation would amount to per THE distribution formula in the bill tends to favor states with large urban broadly-based state individual income below average per capita and large tax efforts in relation to personal Foundation analysts observe that these factors in the rather complicated Mon formula do c Utah with an In the revenue-sharing is a rare since the bill generally produces reverse with the wealthiest states entitled to the largest allocations and the poorest states receiving the smallest per person THE HOUSE passed revenue-sharing bill would allocate a total of billion in 1972 billion to state governments and billion to local units and The amount granted to state governments would be increased each year and reach billion by Under the each state could spend the added funds in any way it Funds going to local could be spent only on specific such as police and fire sewage pollution transportation urban and certain public COST OF the proposed revenue-sharing program would be borne by all persons paying Federal The Foundation calculated that Utah's share of the Federal tax needed to finance the program would amount to approximately Since the Utah would equal the apparent net gain to the state would be In other J Utah would receive 1 approximately back for each paid in Federal taxes to finance the revenue These calculations are based only on the amounts that are allocated and do not include overhead and administrative costs which would reduce any realized by the THE foundation analysis points out that the House revenue sharing bill is scheduled for consideration in the U.S. where it is expected that the formula which stresses aid to the populous industrial states will face hard In the the smaller states have an equal vote with the larger states and some changes may be made in the distribution |