**3.1 Revising the tax code to provide more resources for building community-level civil society**

In the U. S. most of the discussion about economic inequality and proposals for remedying it quite rightly focuses on the need to adjust the tax code to bring more relief to especially disadvantaged households. Less attention, however, has been given to tax code reforms that would be specifically "place-based" and thus play a critical role in ameliorating the decline of communities that do not provide economic or social support for their citizens. In the U. S. this includes both declining cities, like Steubenville, Ohio [37] and "left behind" rural towns [4].

Collier [38] presents an outline of how a more place-based shift in the tax code could provide the material resources to assist declining places to become more sustainable, both socially and economically, while, at the same time, facilitate the adaptation of the societies in which they are located to adapt to the increasing globalization demands for higher levels of skills from its citizens. He argues that rather than focus solely on assisting individuals, it would be more efficient to support through tax revenue "clusters" of social support – i.e., social systems of social, emotional, health and mental health support for at risk families and children, as well as a concentration of material and human capital resources – i.e., physical infrastructure, especially communication technology, and incentives to attract highly skilled workers - for a twenty first century economy in struggling communities. This would mirror to some degree the *agglomeration* benefits that accrue to large metropolitan areas. Collier focuses on declining urban regions, but the tax revenue funded "cluster" principle he describes is applicable to rural places as well.
