Full Citation

Title: Unmasking Local Fiscal Responses to Federal Tax Deductibility

Citation Type: Journal Article

Publication Year: 2017

ISBN:

ISSN:

DOI: dx.doi.org/10.17310/ntj.2017.2.01

NSFID:

PMCID:

PMID:

Abstract: This paper analyzes how changes to the deductibility o f state and local taxes under the federal personal income tax affect local fiscal outcomes. This paper is the first to study the impact o f changing tax prices on local fiscal outcomes while allowing for local heterogeneity in tax incentives at the county level. Exploiting variation at the county level yields a more elastic relationship between tax price and local spending than using coarser units o f observation. Simulations suggest that limiting the deduction fo r state and local taxes would not disproportionately hurt resourcepoor areas, making such limits potentially progressive policy options.

Url: http://web.a.ebscohost.com.ezp2.lib.umn.edu/ehost/pdfviewer/pdfviewer?vid=1&sid=c85583d4-632d-421a-9509-e9ee7cb4b41c%40sessionmgr4006

User Submitted?: No

Authors: Coyne, David

Periodical (Full): National Tax Journal

Issue: 2

Volume: 70

Pages: 223-256

Data Collections: IPUMS USA

Topics: Poverty and Welfare

Countries: