The process by which one unit of government yields a portion of its tax income to another
Unit of government according to an established formula is called

A) general revenue sharing.
B) preemption.
C) means testing.
D) indexing.

General Revenue Sharing

A form of federal monetary aid that is given to states and municipalities with minimal restrictions on how it can be spent.

Means Testing

A procedure to determine eligibility for certain forms of financial aid or social services based on the income and assets of an applicant.

Indexing

The practice of adjusting financial figures or static amounts by a designated benchmark or index to reflect changes in economic indicators.