262 MULTIPLE PURPOSE RIVER DEVELOPMENT 



the South Atlantic, East North Central, and the West South Central 

 states experiencing quite large net losses. 



These conclusions are based on use of our tax Model A. So far 

 as the interregional distribution of costs and gains and net income 

 transfers are concerned, use of tax Model B would not result in 

 very great differences. This is not to deny that there would be 

 significantly different income redistributive consequences among 

 income classes and, of course, individuals within each region, 

 depending on the tax model assumed to apply. But the regional 

 incidence of increased tax liabilities is quite similar, irrespective 

 of the tax model used. 



Income Redistributive Consequences of Difference 

 in Incidence of Costs and Gains 



In this and the preceding chapter, we have been concerned essen- 

 tially with the two aspects of the income redistributive conse- 

 quences attending different approaches to the development of a 

 reimbursable project feature. 



In Chapter VII, we first looked at the differences in the account- 

 ing costs which would arise under alternative approaches to the 

 development of a hypothetical Willamette Basin site. We attempted 

 to estimate the unmet portion of the opportunity cost and the 

 amount of shifted tax liabilities in connection with federal develop- 

 ment, and to identify the incidence of these income transfers by 

 income class and by regions. Similarly, in the case of local public 

 development, we took that portion of the difference in annual 

 operating costs between the local public and local private oper- 

 ation of identical facilities which would be enjoyed by virtue of 

 the local public bodies' immunity from federal taxation and iden- 

 tified the incidence of the resulting increased general tax liabilities 

 of others. In the case of the private electric utility, we took that 

 portion of the increased general tax liability that would be occa- 

 sioned by the use of accelerated amortization to determine the 

 regional incidence of the costs. 



In this chapter, we have tried to identify those who gain under 

 the alternative approaches to the development of the project's 

 reimbursable hydroelectric feature. On the basis of these crude 



