Individual Tax Rates and Regional Tax Revenues: A Cross-State Analysis

Hakan Yilmazkuday

No 1507, Working Papers from Florida International University, Department of Economics

Abstract: This paper analyzes the effects of state-level personal tax rates on state tax revenue and individual welfare. The policy analysis based on a general equilibrium model suggests that tax revenues would benefit from higher wage-income, sales or property taxes, while any increase in dividend-income tax would result in a reduction of revenues. It is also shown that individuals would suffer from an increase in state-level wage-income tax, dividend-tax or sales tax, while they would benefit from an increase in property taxes. The heterogeneity across states is determined by a TaxIndex, a weighted average of initial taxes at the state level.

Keywords: Regional Taxes; State Tax Revenue; Individual Welfare (search for similar items in EconPapers)
JEL-codes: H24 H71 R13 R51 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2015-11
New Economics Papers: this item is included in nep-pbe, nep-pub and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://economics.fiu.edu/research/pdfs/2015_working_papers/1507.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: Individual tax rates and regional tax revenues: a cross-state analysis (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:1507

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