EVOLUTION OF LOCAL FINANCE IN USA

Article is devoted to the evolution of the local finance in the USA. The purpose of this paper is to reveal the main historical stages of development of the local finance system in the United States and to identify the causes and factors that led to the transformation of the system in different periods of the state existence. It was used the methods of analysis and synthesis, economic generalizations. The research methodology is based on a thorough analysis of the foreign scientists’ works on public finance, websites of statistical information about taxation in the USA. The article describes the process of formation and development of the local finance system in the USA. The main sources of local budgets in the historical aspect and by type of revenue were analyzed. Property taxes, income taxes, sales taxes, other local taxes and fees, non-tax revenues to local governments, and intergovernmental payments were considered. The main result of the study is to identify the causes and factors that affect to the transformation of the local taxation system in USA, major among which can be considered a reduction in the volume of and an increase in the role of the service sector, demographic changes and internal displacement by region of the country. The article will be useful for a wide range of experts in the field of public finance, local taxation, etc.