IDEAS home Printed from https://ideas.repec.org/a/ntj/journl/v58y2005i1p93-112.html
   My bibliography  Save this article

On the Determinants of Subnational Tax Progressivity in the U.S

Author

Listed:
  • Chernick, Howard

Abstract

An instrumental variables model of state and local tax incidence is estimated for the years 1977, 1985, and 1991. Tax exporting through deductibility of state and local taxes has a significant positive effect on tax progressivity. I find a negative neighbor effect, with more progressive states geographically contiguous with more regressive states. Party control by Republicans is associated with a more regressive tax structure. Expenditure and tax progressivity are not closely related to one another, with higher welfare spending financed by proportionally higher tax burdens throughout the income distribution. Greater inequality in pre–tax income distributions is offset by more progressive tax systems, but the degree of offset is small.

Suggested Citation

  • Chernick, Howard, 2005. "On the Determinants of Subnational Tax Progressivity in the U.S," National Tax Journal, National Tax Association;National Tax Journal, vol. 58(1), pages 93-112, March.
    • Handle: RePEc:ntj:journl:v:58:y:2005:i:1:p:93-112
    DOI: 10.17310/ntj.2005.1.05
    as

    Download full text from publisher

    File URL: https://doi.org/10.17310/ntj.2005.1.05
    Download Restriction: Access is restricted to subscribers and members of the National Tax Association.
    File URL: https://doi.org/10.17310/ntj.2005.1.05
    Download Restriction: Access is restricted to subscribers and members of the National Tax Association.
    File URL: https://libkey.io/10.17310/ntj.2005.1.05?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Leah Platt Boustan & Fernando Ferreira & Hernan Winkler & Eric Zolt, 2010. "Income Inequality and Local Government in the United States, 1970-2000," NBER Working Papers 16299, National Bureau of Economic Research, Inc.
    2. Alessandro Bucciol & Laura Cavalli & Paolo Pertile & Veronica Polin & Alessandro Sommacal, 2016. "Redistribution at the local level: the case of public childcare in Italy," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 63(4), pages 359-378, December.
    3. Raúl A. Ponce Rodríguez & Ikuho Kochi & Luis E. Gutiérrez Casas, 2015. "The structure of political power and redistribution in economies with multiple governments," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 30(2), pages 269-303.
    4. Jonathan C. Rork & Gary A. Wagner, 2009. "Reciprocity and Competition: Is There a Connection?," Working Papers 2009/1, Institut d'Economia de Barcelona (IEB).
    5. Kosec, Katrina, 2014. "Relying on the private sector: The income distribution and public investments in the poor," Journal of Development Economics, Elsevier, vol. 107(C), pages 320-342.
    6. Kara D. Smith & Bryan Shone, 2016. "Progressive State Taxes and Welfare," Poverty & Public Policy, John Wiley & Sons, vol. 8(4), pages 430-437, December.
    7. Raúl Alberto Ponce Rodríguez, 2018. "Campaign contributions and local public goods in a federation," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 33(2), pages 283-311.
    8. Rebecca Hendrick & Xiaoyan Hu, 2020. "Beyond Truth and Integrity in State Budgeting: Why State Governments Use Budget Balancing Maneuvers (or Gimmicks)?," Public Budgeting & Finance, Wiley Blackwell, vol. 40(4), pages 104-127, December.
    9. Suárez-Varela, Marta & Martínez-Espiñeira, Roberto & González-Gómez, Francisco, 2015. "An analysis of the price escalation of non-linear water tariffs for domestic uses in Spain," Utilities Policy, Elsevier, vol. 34(C), pages 82-93.
    10. Bahl, Roy & Martinez-Vazquez, Jorge & Wallace, Sally, 2002. "State and Local Government Choices in Fiscal Redistribution," National Tax Journal, National Tax Association;National Tax Journal, vol. 55(4), pages 723-742, December.
    11. Howard Chernick & Cordelia Reimers & Jennifer Tennant, 2014. "Tax structure and revenue instability: the Great Recession and the states," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-22, December.
    12. Metcalf, Gilbert E., 2011. "Assessing the Federal Deduction for State and Local Tax Payments," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(2), pages 565-590, June.
    13. Howard Chernick & Jennifer Tennant, 2010. "Federal-State Tax Interactions in the United States and Canada," Publius: The Journal of Federalism, CSF Associates Inc., vol. 40(3), pages 508-533, Summer.
    14. John Deskins & Brian Hill, 2010. "Have State Tax Interdependencies Changed Over Time?," Public Finance Review, , vol. 38(2), pages 244-270, March.
    15. Andrea Louise Campbell & Michael W. Sances, 2013. "State Fiscal Policy during the Great Recession," The ANNALS of the American Academy of Political and Social Science, , vol. 650(1), pages 252-273, November.
    16. Kinam Kim & Peter J. Lambert, 2009. "Redistributive Effect of U.S. Taxes and Public Transfers, 1994-2004," Public Finance Review, , vol. 37(1), pages 3-26, January.
    17. Hawley, Zackary & Rork, Jonathan C., 2015. "Competition and property tax limit overrides: Revisiting Massachusetts' Proposition 2½," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 93-107.
    18. John M. Foster, 2014. "Tax Exporting and the Business Share of Sales Tax Levies," Public Budgeting & Finance, Wiley Blackwell, vol. 34(4), pages 80-99, December.
    19. Jonathan C. Rork & Gary A. Wagner, 2012. "Is There a Connection Between Reciprocity and Tax Competition?," Public Finance Review, , vol. 40(1), pages 86-115, January.
    20. Jonathan C. Rork & Gary A. Wagner, 2009. "Reciprocity and Competition: Is There a Connection?," Working Papers 2009/1, Institut d'Economia de Barcelona (IEB).

    More about this item

    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:ntj:journl:v:58:y:2005:i:1:p:93-112. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: The University of Chicago Press (email available below). General contact details of provider: https://www.ntanet.org/ .

    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.