Public Finance for Cities

Public Finance for Cities presents a comprehensive and modern examination of the benefit principle of taxation--the concept that individuals should contribute to public revenue in proportion to the benefits they derive from government services. It revisits and builds on this foundational concept in public finance through a new analytical model that adapts the principle to the realities of contemporary fiscal systems, governance, and economic diversity. Combining conceptual discussion with empirical insights, the authors trace the evolution of benefit-based taxation in economic thought and public policy, presenting a rich synthesis of global literature. Drawing from successful international practices, the book examines how municipalities and countries have implemented benefit-oriented approaches to improve efficiency, fairness, and accountability in tax design and local service delivery, demonstrating how aligning taxation with the benefits of public services can foster stronger fiscal discipline, enhance trust in the government, and encourage citizen participation. The book concludes by proposing a set of municipal finance reforms inspired by the benefit principle, offering policymakers and practitioners a framework for designing sustainable, transparent, and equitable fiscal systems.