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Revealed Preference for Car Tax Cuts: An Empirical Study of Perceived Fiscal Incidence

Author

Listed:
  • Samuel A. Baker

    (Department of Economics, College of William and Mary)

  • David H. Feldman

    (Department of Economics, College of William and Mary)

Abstract

Voting in an election in which elimination of the local car tax is the central issue shows how a highly visible universal tax cut can prevail in the electoral process even if benefits are skewed toward upper income households. These results are consistent with positive models of fiscal structure choice in which fiscal systems are the consequence of support maximizing politicians attempting to supply net benefits to easily identifiable interest groups without generating significant opposition from other groups.

Suggested Citation

  • Samuel A. Baker & David H. Feldman, 2004. "Revealed Preference for Car Tax Cuts: An Empirical Study of Perceived Fiscal Incidence," Working Papers 08, Department of Economics, College of William and Mary.
    • Handle: RePEc:cwm:wpaper:8
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    File URL: http://economics.wm.edu/wp/cwm_wp8.pdf
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    References listed on IDEAS

    as
    1. Timothy Besley & Anne Case, 2003. "Political Institutions and Policy Choices: Evidence from the United States," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 7-73, March.
    2. Sam Peltzman, 1992. "Voters as Fiscal Conservatives," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 327-361.
    3. Chien-Hsun Chen, 2004. "Fiscal decentralization, collusion and government size in China's transitional economy," Applied Economics Letters, Taylor & Francis Journals, vol. 11(11), pages 699-705.
    4. Stine, William F., 2003. "The Effect of Personal Property Tax Repeal on Pennsylvania’s Real Estate Tax Growth and Stability," National Tax Journal, National Tax Association;National Tax Journal, vol. 56(1), pages 45-60, March.
    5. John H. Beck & Randall W. Bennett, 2003. "Taxation, License Fees, and New Car Registrations," Public Finance Review, , vol. 31(5), pages 487-509, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Targeted universalism; Personal property taxes; Tax revolt;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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