“Theory and Practice” is the flag under which this study is designed to sail. The subject matter derives its fascination precisely from the close interaction of theory and practice which this study is designed to sail. The subject matter derives its fascination precisely from the close interaction of theory and practice which it entails. There is no way of understanding the one without the other. On one side there is the vast array of fiscal institutions—tax systems, expenditure programs, budget procedures, stabilization instruments, debt issues, levels of government, Congress, the Executive, city halls, and the votes. On the other, there is the endless stream of analytical tools needed to resolve them...

As a study in public policy, this volume deals with many of the central economic and social issues of the 1970’s. They are issues which call for resolution by public policy because, like it or not, they cannot be handled adequately through a decentralized market. A public sector is needed to make society work and the task is to do this in a framework of individual freedom and justice. Making the fiscal sytem work is, after all, a large part of making democracy function...

Pains have been taken to combine analysis with presentation of material and to point the discussion toward current policy issues. It is designed primarily to serve as an undergraduate text. While complete coverage may call for a full year’s study, the material may be readily adapted to use in a one-term course, with selections made to meet the particular interests of the instructur and his students...