What are some econ. benefits having a single local jurisdiction and government for any metropolitan area?

Question

I need to make an economic case for this consolidation into a metropolitan-area government. Why is it favorable? thanks

Answer 1

Unequal tax rates will distort markets. When sales taxes vary, people will shop where the taxes are lowest, so a city/ town can not raise revenue by raising rates. Jurisdictions with expensive homes will need lower property tax rates to raise necessary revenue, which will increase property values making them even more expensive or the reverse for low priced homes. Highly unequal tax base results in funding being supplied by state and sometimes federal intervention to equalize resources.
If there are many jurisdiction they often compete instead of cooperating to solve problems related to public services, such as roads, public transit, and even water, so states and the federal government are given power to make decisions that would better be made on the local level

A web site that may be useful is the social explorer which allows your to map down to the resolution of census tracks a vast array of demographic data for any metro aera you zoom to. http://www.socialexplorer.com/pub/maps/map3.aspx?g=0