Tax Reform
Implications for the State-Local Public Sector
Bibliographic Data
| ID | 4841632 |
|---|---|
| Authors | Paul N Courant (Professor of Economics and Public Policy, University of Michigan, Ann Arbor, Michigan.), Daniel L Rubinfeld (0000-0002-0663-4835, Professor of Law and Economics, University of California at Berkeley, Berkeley, California.) |
| Year | 1987 |
| Volume | 1 |
| Issue | 1 |
| Pages | 87-100 |
| Publication date | 1987-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic Perspectives (JOURNAL) |
| Journal identifiers | ISSN: 0895-3309 • E-ISSN: 1944-7965 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/jep.1.1.87 |
| OpenAlex | W1998504290 |
| Language | EN |
| Citations received | 3 |
| References cited | 6 |
We analyze the effects of the Tax Reform Act of 1986 on the level and distribution of state and local spending, and on the mix of revenue sources employed by state and local governments. We expect state and local spending to fall by between 0.9 percent and 1.9 percent, with the lower end of the range the more plausible. The conclusion that aggregate spending is unlikely to change very much does not imply that the Tax Reform Act is unimportant to the state and local public sector. The fiscal and economic circumstances of state and local governments vary enormously, and the federal tax reform will therefore affect them very differently. The relative fiscal attractiveness of localities within metropolitan areas will be altered. From both efficiency and equity perspectives, these effects on local governments are likely to be much more important than the aggregate effect on either state or local spending. Over the longer run, apart from the obvious incentive to move away from the nondeductible sales tax to other deductible taxes, the effect of tax reform on the mix of revenue instruments is difficult to predict. The new tax bill also has major implications for bond financing as it it limits the use of the tax-exempt bond instrument
Ad valorem tax · Direct tax · Economic policy · Economics · Gross income · Incentive · Local government · Market economy · Metropolitan area · Public economics · Revenue · State income tax · Tax reform · Tax Reform Act · Value-added tax · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Public Administration · Finance
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,09 |
| Citation span | 1993 - 1993 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |