King DN (2006) Allocation of Taxing Powers. OECD Journal on Budgeting, 6 (3), pp. 123-155.
Sub-central taxes are needed because sub-central governments spend large sums. This article discusses some key issues in subcentral taxation from an economist's perspective, including the scale and role of sub-central governments, their main revenue sources, and questions of equity, tax sharing, economic management and accountability. A more detailed discussion explores the relative shares o/domestic taxes and business taxes.
OECD Journal on Budgeting: Volume 6, Issue 3