Coveting Thy Neighbors' Taxation

Jonathan Rork

National Tax Journal, 2003, vol. 56, issue 4, 775-87

Abstract: Recent research has shown that a state’s overall tax burden is dependent on that of neighboring states. By disaggregating a state’s tax burden into its individual components, this paper demonstrates that during the period of 1967–1996, state taxes with a mobile tax base had positive response rates as high as 60 percent. Thus, a 10 percent increase in neighboring states’ rates was met by an increase of up to 6 percent in the home state’s rate. Taxes with relatively immobile tax bases exhibit negative responsiveness, meaning that states respond to rate increases in neighboring states by decreasing home rates.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

Downloads: (external link)
https://doi.org/10.17310/ntj.2003.4.04 (application/pdf)
https://doi.org/10.17310/ntj.2003.4.04 (text/html)
Access is restricted to subscribers and members of the National Tax Association.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ntj:journl:v:56:y:2003:i:4:p:775-87

Access Statistics for this article

National Tax Journal is currently edited by Stacy Dickert-Conlin and William M. Gentry

More articles in National Tax Journal from National Tax Association, National Tax Journal Contact information at EDIRC.
Bibliographic data for series maintained by The University of Chicago Press ().