The Unequal Geographic Burden of Federal Taxation
David Albouy ()
Journal of Political Economy, 2009, vol. 117, issue 4, 635-667
In the United States, workers in cities offering above-average wages-cities with high productivity, low quality of life, or inefficient housing sectors-pay 27 percent more in federal taxes than otherwise identical workers in cities offering below-average wages. According to simulation results, taxes lower long-run employment levels in high-wage areas by 13 percent and land and housing prices by 21 and 5 percent, causing locational inefficiencies costing 0.23 percent of income, or $28 billion in 2008. Employment is shifted from north to south and from urban to rural areas. Tax deductions index taxes partially to local cost of living, improving locational efficiency. (c) 2009 by The University of Chicago. All rights reserved.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (124) Track citations by RSS feed
Downloads: (external link)
http://dx.doi.org/10.1086/605309 link to full text (text/html)
Access to full text is restricted to subscribers.
Working Paper: The Unequal Geographic Burden of Federal Taxation (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpolec:v:117:y:2009:i:4:p:635-667
Access Statistics for this article
More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().