IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v33y2005i3p279-299.html
   My bibliography  Save this article

The Etiology of Tax Complexity: Evidence from U.S. State Income Tax Systems

Author

Listed:
  • Joel Slemrod

    (University of Michigan)

Abstract

This article uses the variation in U.S. state income tax systems to examine what engenders tax complexity. An analysis of simple measures of the variation in complexity, based on the number of lines in the tax forms and the number of pages in the instruction booklets, reveals some intriguing patterns. States with more professional legislatures, as measured by the salaries paid, tend to have more complex tax systems, as do states with a less active voting population.

Suggested Citation

  • Joel Slemrod, 2005. "The Etiology of Tax Complexity: Evidence from U.S. State Income Tax Systems," Public Finance Review, , vol. 33(3), pages 279-299, May.
    • Handle: RePEc:sae:pubfin:v:33:y:2005:i:3:p:279-299
    DOI: 10.1177/1091142105275003
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1091142105275003
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1091142105275003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fiorina, Morris P., 1994. "Divided Government in the American States: A Byproduct of Legislative Professionalism?," American Political Science Review, Cambridge University Press, vol. 88(2), pages 304-316, June.
    2. Joel Slemrod, 1989. "The Return To Tax Simplification: an Econometric Analysis," Public Finance Review, , vol. 17(1), pages 3-27, January.
    3. Mulligan, Casey B. & Shleifer, Andrei, 2003. "Population and Regulation," Working Papers 190, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    4. Poterba, James M., 1995. "Capital budgets, borrowing rules, and state capital spending," Journal of Public Economics, Elsevier, vol. 56(2), pages 165-187, February.
    5. Poterba, James M, 1994. "State Responses to Fiscal Crises: The Effects of Budgetary Institutions and Politics," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 799-821, August.
    6. Crain, W. Mark & Crain, Nicole Verrier, 1998. "Fiscal consequences of budget baselines," Journal of Public Economics, Elsevier, vol. 67(3), pages 421-436, March.
    7. Bohn, Henning & Inman, Robert P., 1996. "Balanced-budget rules and public deficits: evidence from the U.S. states," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 45(1), pages 13-76, December.
    8. Hettich,Walter & Winer,Stanley L., 2005. "Democratic Choice and Taxation," Cambridge Books, Cambridge University Press, number 9780521021807.
    9. Henning Bohn & Robert P. Inman, "undated". "Balanced Budget Rules and Public Deficits: Evidence from the U.S. States (Reprint 060)," Rodney L. White Center for Financial Research Working Papers 10-96, Wharton School Rodney L. White Center for Financial Research.
    10. John R. Lott & Jr. & Lawrence W. Kenny, 1999. "Did Women's Suffrage Change the Size and Scope of Government?," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1163-1198, December.
    11. Berry, William D. & Berkman, Michael B. & Schneiderman, Stuart, 2000. "Legislative Professionalism and Incumbent Reelection: The Development of Institutional Boundaries," American Political Science Review, Cambridge University Press, vol. 94(4), pages 859-874, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nima Massarrat-Mashhadi & Christian Sielaff, 2012. "Testing taxpayers' cognitive abilities - Survey-based evidence," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 5(1), pages 7-22, April.
    2. Morelli, Massimo & Ash, Elliott & Vannoni, Matia, 2022. "More Laws, More Growth? Evidence from U.S. States," CEPR Discussion Papers 15629, C.E.P.R. Discussion Papers.
    3. Hans Bacher & Marius Brülhart, 2013. "Progressive taxes and firm births," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(1), pages 129-168, February.
    4. Leonzio Rizzo & Alejandro Esteller - Moré & Riccardo Secomandi, 2020. "The role of tax system complexity on foreign direct investment allocation," Working Papers 2020029, University of Ferrara, Department of Economics.
    5. Joel Slemrod, 2010. "Old George Orwell Got It Backward: Some Thoughts on Behavioral Tax Economics," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(1), pages 15-33, March.
    6. Philippe Aghion & Ufuk Akcigit & Maxime Gravoueille & Matthieu Lequien & Stefanie Stantcheva, 2023. "Tax simplicity or simplicity of evasion? Evidence from self-employment taxes in France," POID Working Papers 050, Centre for Economic Performance, LSE.
    7. Traviss Cassidy & Mark Dincecco & Ugo Troiano, 2015. "Broadening State Capacity," NBER Working Papers 21373, National Bureau of Economic Research, Inc.
    8. Micael Castanheira & Gaëtan Nicodème & Paola Profeta, 2012. "On the political economics of tax reforms: survey and empirical assessment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 598-624, August.
    9. Hoppe, Thomas & Schanz, Deborah & Sturm, Susann & Sureth-Sloane, Caren, 2017. "What are the drivers of tax complexity for multinational corporations? Evidence from 108 countries," arqus Discussion Papers in Quantitative Tax Research 223, arqus - Arbeitskreis Quantitative Steuerlehre.
    10. Hoppe, Thomas & Schanz, Deborah & Sturm, Susann & Sureth, Caren, 2019. "Measuring tax complexity across countries: A survey study on MNCs," arqus Discussion Papers in Quantitative Tax Research 245, arqus - Arbeitskreis Quantitative Steuerlehre.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ohad Raveh & Yacov Tsur, 2018. "Resource Windfalls and Public Debt: The Role of Political Myopia," OxCarre Working Papers 205, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    2. Matsusaka, John G, 2000. "Fiscal Effects of the Voter Initiative in the First Half of the Twentieth Century," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 619-650, October.
    3. Raveh, Ohad & Tsur, Yacov, 2020. "Resource windfalls and public debt: A political economy perspective," European Economic Review, Elsevier, vol. 123(C).
    4. Ohad Raveh & Yacov Tsur, 2017. "Political Myopia, Public Debt," OxCarre Working Papers 200, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    5. Borge, Lars-Erik & Hopland, Arnt O., 2020. "Less fiscal oversight, more adjustment," European Journal of Political Economy, Elsevier, vol. 63(C).
    6. Leblanc, William & Snyder, James Jr. & Tripathi, Micky, 2000. "Majority-rule bargaining and the under provision of public investment goods," Journal of Public Economics, Elsevier, vol. 75(1), pages 21-47, January.
    7. Raveh, Ohad & Tsur, Yacov, 2020. "Reelection, growth and public debt," European Journal of Political Economy, Elsevier, vol. 63(C).
    8. Borge, Lars-Erik, 2005. "Strong politicians, small deficits: evidence from Norwegian local governments," European Journal of Political Economy, Elsevier, vol. 21(2), pages 325-344, June.
    9. Maltritz, Dominik & Wüste, Sebastian, 2015. "Determinants of budget deficits in Europe: The role and relations of fiscal rules, fiscal councils, creative accounting and the Euro," Economic Modelling, Elsevier, vol. 48(C), pages 222-236.
    10. Fabio Canova & Evi Pappa, 2006. "Does It Cost to Be Virtuous? The Macroeconomic Effects of Fiscal Constraints," NBER Chapters, in: NBER International Seminar on Macroeconomics 2004, pages 327-370, National Bureau of Economic Research, Inc.
    11. Aaron Schneider, 2006. "Responding to fiscal stress: Fiscal institutions and fiscal adjustment in four Brazilian states," Journal of Development Studies, Taylor & Francis Journals, vol. 42(3), pages 402-425.
    12. Cardona Bermeo, Jorge Enrique, 2002. "Manejo de pasivos contingentes en el marco de la disciplina fiscal en Colombia," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34872, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    13. Heiko T. Burret & Lars P. Feld, 2014. "A Note on Budget Rules and Fiscal Federalism," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(01), pages 03-11, April.
    14. Jeffrey Clemens & Benedic Ippolito, 2018. "Implications of Medicaid Financing Reform for State Government Budgets," Tax Policy and the Economy, University of Chicago Press, vol. 32(1), pages 135-172.
    15. Azzimonti, Marina & Battaglini, Marco & Coate, Stephen, 2016. "The costs and benefits of balanced budget rules: Lessons from a political economy model of fiscal policy," Journal of Public Economics, Elsevier, vol. 136(C), pages 45-61.
    16. Vlenadia, Antonio, 2002. "A risk quantification model for public debt management," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34867, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    17. Canova, Fabio & Pappa, Evi, 2006. "The elusive costs and the immaterial gains of fiscal constraints," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1391-1414, September.
    18. Easterly, William, 1999. "When is fiscal adjustment an illusion?," Policy Research Working Paper Series 2109, The World Bank.
    19. Guerguil, Martine & Mandon, Pierre & Tapsoba, René, 2017. "Flexible fiscal rules and countercyclical fiscal policy," Journal of Macroeconomics, Elsevier, vol. 52(C), pages 189-220.
    20. Claudio A. Agostini, 2007. "The Impact of State Corporate Taxes on FDI Location," Public Finance Review, , vol. 35(3), pages 335-360, May.

    More about this item

    Keywords

    income tax; complexity;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:33:y:2005:i:3:p:279-299. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.