Thematic Essay On Federalism

Thematic Essay On Federalism-5
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The President suggests we pass the decision on welfare down to the people close to home.

Liberals see these local voters as a pack of heartless skinflints; conservatives see the decision-making close to home as a useful discipline to curb the explosion of welfare costs. Reagan proposes to transfer the revenue from national sales taxes to the states, ultimately giving them the right to take over all taxation of booze and butts, and maybe gasoline.

On the domestic side, the real Reagan is in the White House and all's right-wing with the world.

(But who is this other Reagan he dragged along to handle foreign affairs?

(That was understandable; we once labeled a Nixon proposal the '' New Economic Plan,'' only to learn that had been the name of a scheme by Lenin.) However, briefers and broadcasters have been using the '' New Federalism'' tag to describe the bold Reagan idea. Thirteen years ago, we used it to mean the consolidation of specific ''categorical'' grants into broader ''bloc'' grants, giving states and localities more leeway in the spending of Federal monies; going further, the Nixon men started ''revenue sharing,'' the earmarking of a part of the Federal budget for state and local use with few strings attached.

Back then, the notion was to have the Federal Government do what it does best (levy taxes) and to have state and local governments do what they do best (administer local spending).

Now comes the Reagan sweetener: we'll take care of your sick if you'll take care of your poor.

The fastest-rising welfare cost is medicaid, presently paid by the states and cities; the President proposes to assume this cost of caring for the sick at the Federal level if the local levels pick up the whole cost of caring for their poor.

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