IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v10y1992i2p147-158.html
   My bibliography  Save this article

Interstate Differentials in State and Local Business Taxation, 1971–86

Author

Listed:
  • N Bania

    (Center for Regional Economic Issues, Case Western Reserve University, Cleveland, OH 44106, USA)

  • L N Calkins

    (Center for Regional Economic Issues, Case Western Reserve University, Cleveland, OH 44106, USA; Department of Economics and Finance, John Carroll University, University Heights, OH 44118, USA)

Abstract

A necessary step in addressing questions of business tax incidence or resource allocation is the development of adequate measures of interstate business tax differentials. Earlier work by Wheaton is extended and updated by the construction of new estimates of the aggregate state and local taxation of US business over the period 1971–86. The results suggest the following: First, the average level of business taxation by state and local governments is approximately 5% of net business income. Second, there appears to be substantial and increasing variation in the effective tax rate on businesses among the individual states. Third, the Northeast remains a place of significantly high tax burdens on businesses. And, last, certain states experience more variation in their effective tax rate over time—a phenomenon at least partly attributable to the effects of the business cycle on business income.

Suggested Citation

  • N Bania & L N Calkins, 1992. "Interstate Differentials in State and Local Business Taxation, 1971–86," Environment and Planning C, , vol. 10(2), pages 147-158, June.
  • Handle: RePEc:sae:envirc:v:10:y:1992:i:2:p:147-158
    DOI: 10.1068/c100147
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/c100147
    Download Restriction: no

    File URL: https://libkey.io/10.1068/c100147?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. Timothy J. Bartik, 2010. "Small Business Start-Ups in the United States: Estimates of the Effects of Characteristics of States," Book chapters authored by Upjohn Institute researchers, in: Zolton Acs (ed.),Entrepreneurship and regional Development, pages 155-169, W.E. Upjohn Institute for Employment Research.
    2. Rubin, Barry M. & Zorn, C. Kurt, 1986. "A methodology for comparing manufacturing industry costs at the state level," Socio-Economic Planning Sciences, Elsevier, vol. 20(2), pages 103-122.
    3. Helms, L Jay, 1985. "The Effect of State and Local Taxes on Economic Growth: A Time Series-Cross Section Approach," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 574-582, November.
    4. Charney, Alberta H., 1983. "Intraurban manufacturing location decisions and local tax differentials," Journal of Urban Economics, Elsevier, vol. 14(2), pages 184-205, September.
    5. Newman, Robert J. & Sullivan, Dennis H., 1988. "Econometric analysis of business tax impacts on industrial location: What do we know, and how do we know it?," Journal of Urban Economics, Elsevier, vol. 23(2), pages 215-234, March.
    6. McGuire, Therese J., 1985. "Are local property taxes important in the intrametropolitan location decisions of firms? An empirical analysis of the Minneapolis-St. Paul metropolitan area," Journal of Urban Economics, Elsevier, vol. 18(2), pages 226-234, September.
    Full references (including those not matched with items on IDEAS)

    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. Kusmin, Lorin D., 1994. "Factors Associated with the Growth of Local and Regional Economies: A Review of Selected Empirical Literature," Staff Reports 278733, United States Department of Agriculture, Economic Research Service.
    2. Sung Hoon Kang & Mark Skidmore & Laura Reese, 2015. "The Effects of Changes in Property Tax Rates and School Spending on Residential and Business Property Value Growth," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(2), pages 300-333, June.
    3. Kevin T. Duffy-Deno, 1991. "Public Capital and the Factor Intensity of the Manufacturing Sector," Urban Studies, Urban Studies Journal Limited, vol. 28(1), pages 3-14, February.
    4. Dayton M. Lambert & Kevin T. McNamara, 2009. "Location determinants of food manufacturers in the United States, 2000–2004: are nonmetropolitan counties competitive?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 617-630, November.
    5. Michael Wasylenko, 1997. "Taxation and economic development: the state of the economic literature," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 37-52.
    6. Hines, James R, Jr, 1996. "Altered States: Taxes and the Location of Foreign Direct Investment in America," American Economic Review, American Economic Association, vol. 86(5), pages 1076-1094, December.
    7. Richard Funderburg & Timothy J. Bartik & Alan H. Peters & Peter S. Fisher, 2013. "The Impact Of Marginal Business Taxes On State Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 53(4), pages 557-582, October.
    8. Janet E Kohlhase & Xiahong Ju, 2007. "Firm Location in a Polycentric City: The Effects of Taxes and Agglomeration Economies on Location Decisions," Environment and Planning C, , vol. 25(5), pages 671-691, October.
    9. Rork, Jonathan C., 2005. "Getting What You Pay For: The Case of Southern Economic Development," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 35(2), pages 1-17.
    10. Jordi Jofre Monseny & Alberto Sole Olle, 2007. "Tax Differentials and Agglomeration Economies in Intraregional Firm Location," Working Papers in Economics 180, Universitat de Barcelona. Espai de Recerca en Economia.
    11. Paulo Guimaraes & Robert J. Rolfe & Douglas P. Woodward, 1998. "Regional Incentives and Industrial Location in Puerto Rico," International Regional Science Review, , vol. 21(2), pages 119-138, August.
    12. Mark Partridge, 1993. "High-Tech Employment And State Economic Development Policies," The Review of Regional Studies, Southern Regional Science Association, vol. 23(3), pages 287-305, Winter.
    13. Calcagno, Peter T. & Hefner, Frank L., 2007. "State Targeting of Business Investment: Does Targeting Increase Corporate Tax Revenue?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-13.
    14. Meri Davlasheridze & Pinar C. Geylani, 2017. "Small Business vulnerability to floods and the effects of disaster loans," Small Business Economics, Springer, vol. 49(4), pages 865-888, December.
    15. Elena CIGU, 2014. "An Aproach Of Local Financial Autonomy And Implication Over Sustainable Development In The Knowledge Society," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 6(6), pages 44-53, December.
    16. Robert Tannenwald, 1994. "Massachusetts' tax competitiveness," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 31-49.
    17. Sofie De Schoenmaker & Philippe Van Cauwenberge & Heidi Vander Bauwhede, 2014. "Effects of local fiscal policy on firm profitability," The Service Industries Journal, Taylor & Francis Journals, vol. 34(16), pages 1289-1306, December.
    18. Gabe, Todd M., 2003. "Local Fiscal Policy and Establishment Growth," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 33(1), pages 1-24.
    19. Carol Taylor West, 1993. "The Problem of Unemployment in the United States: A Survey of 60 Years of National and State Policy Initiatives," International Regional Science Review, , vol. 16(1-2), pages 17-47, April.
    20. Joyce Y. Man & Mark S. Rosentraub, 1998. "Tax Increment Financing: Municipal Adoption and Effects On Property Value Growth," Public Finance Review, , vol. 26(6), pages 523-547, November.

    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:sae:envirc:v:10:y:1992:i:2:p:147-158. 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.