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'Full fiscal autonomy' is a term used in media and political debate without any great precision as to its meaning. This is often accompanied by confusion about the fiscal powers presently available to the Scottish Parliament, 1 which is characterised as having no fiscal powers and as being wholly dependent on grants from the UK government. Neither of these statements is true. The Scottish Parliament has, for example, more decision-making power over taxes than has any of the German Lander, and about 15% of spending comes from taxes under its control. 2
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Heald et al. (2002) studied this question.
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