Does Federal Deductibility Affect State and Local Revenue Sources?

Bradley Heim and Yulianti Abbas

National Tax Journal, 2015, vol. 68, issue 1, 33-58

Abstract: This paper examines whether the change in federal deductibility of state and local sales taxes initiated by the American Jobs Creation Act of 2004 affected the distribution of state and local level revenue sources. Using data from the 2000–2008 Census Bureau State Government Tax Collections Survey, Annual Surveys of State and Local Government Finances, and Censuses of Governments, we find that federal sales tax deductibility led states to increase sales tax revenue per capita, and decrease individual income and corporate tax revenue per capita and decrease property taxes as a share of total taxes. We do not, however, find any statistically significant impacts on tax sources at the local level.

Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.17310/ntj.2015.1.02 (application/pdf)
https://doi.org/10.17310/ntj.2015.1.02 (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:68:y:2015:i:1:p:33-58

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 ().