Vertical income tax externalities and fiscal interdependence: evidence from the US Export

@article{citeulike:150509, abstract = {Concurrent taxation is a feature of many federal systems. As a result, the tax policy of one level of government affects the tax base of the other. A way to check the empirical relevance of this hypothesis is to test for the existence of interdependencies in the tax setting behaviour of various layers of government. Following this approach, this paper estimates the reaction of US state personal income and general sales taxes to federal tax rates, taking into account the special features of the US tax system. We find that when the federal government increases taxes, there is a significant positive response of state taxes.}, author = {Esteller-More, Alex and Sole-Olle, Albert}, citeulike-article-id = {150509}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/S0166-0462(00)00060-0}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6V89-42HFRJT-6/2/343fcd70b9320b0c2dc4dfa9e00ac0b4}, doi = {10.1016/S0166-0462(00)00060-0}, journal = {Regional Science and Urban Economics}, keywords = {aarpubec, public\_economics, taxation}, month = {April}, number = {2-3}, pages = {247--272}, posted-at = {2005-04-06 20:45:50}, priority = {2}, title = {Vertical income tax externalities and fiscal interdependence: evidence from the US}, url = {http://dx.doi.org/10.1016/S0166-0462(00)00060-0}, volume = {31}, year = {2001} }

TY - JOUR ID - citeulike:150509 L3 - citeulike-article-id:150509 N2 - Concurrent taxation is a feature of many federal systems. As a result, the tax policy of one level of government affects the tax base of the other. A way to check the empirical relevance of this hypothesis is to test for the existence of interdependencies in the tax setting behaviour of various layers of government. Following this approach, this paper estimates the reaction of US state personal income and general sales taxes to federal tax rates, taking into account the special features of the US tax system. We find that when the federal government increases taxes, there is a significant positive response of state taxes. IS - 2-3 JF - Regional Science and Urban Economics EP - 272 TI - Vertical income tax externalities and fiscal interdependence: evidence from the US VL - 31 SP - 247 KW - aarpubec KW - public_economics KW - taxation AU - Esteller-More, Alex AU - Sole-Olle, Albert PY - 2001/04// UR - http://dx.doi.org/10.1016/S0166-0462(00)00060-0 ER -