打印

作者

来源

REGIONAL SCIENCE AND URBAN ECONOMICS,Vol.68,P.84-97

语言

英文

关键字

Vertical tax externality; Narrative tax shocks; Federal taxes; State taxes; FISCAL INTERDEPENDENCE; EMPIRICAL-ANALYSIS; LOCAL-GOVERNMENTS; UNITED-STATES; PANEL DATA; COMPETITION; TAXATION; LOCATION; REFORM; POLICY

作者单位

[Reingewertz, Yaniv] Univ Haifa, Sch Polit Sci, Div Publ Adm & Policy, Haifa, Israel. Reingewertz, Y (reprint author), Univ Haifa, Sch Polit Sci, Div Publ Adm & Policy, Haifa, Israel. E-Mail: yanivrein@poli.haifa.ac.il

摘要

The empirical aspects of vertical tax externalities have been studied fairly extensively, but with little consensus a fact that may relate to difficulties in isolating exogenous components in tax setting policy. Adopting the case of the US and using a narrative approach (Romer and Romer, 2010), I study the vertical effects of federal tax shocks. I find that vertical tax externalities are modest in their size and are only present in corporate taxation. In particular, I estimate that a $1 billion increase in federal tax revenues reduces total state corporate tax revenues by approximately $27 million. Non-corporate state tax revenues do not seem to be affected by federal tax shocks. Taking a state micro-level approach and using firm-level business activity data, I show that the findings point to the erosion of states' corporate tax bases.