Sales Tax Competition among State–Local Governments: Evidence from the US Counties

2017 ◽  
Vol 41 (8) ◽  
pp. 575-589 ◽  
Author(s):  
Jongmin Shon
1987 ◽  
Vol 5 (1) ◽  
pp. 7-18 ◽  
Author(s):  
S D Gold

The US federal system is undergoing significant change in numerous respects, one of which is the tax treatment of business. Taxes with an initial impact on business have traditionally provided a large amount of revenue to state and local governments, and they still do. But the business share of state and local taxes has decreased significantly compared with what it was several decades ago. Moreover, since interstate tax competition has intensified, the business share of taxes may continue to decline. The intensification of interstate tax competition is related to the increased priority of economic development as a goal of state policy. The severe unemployment of the early 1980s is probably the single most important factor in heightened concern about job creation. The increased openness of the US economy—implying especially acute problems for state economies dependent on heavy industry and farming—has also contributed. The decrease in federal corporation tax rates has made state taxes loom larger, and corporations have become more sophisticated about playing states against each other. In this paper, recent trends in business taxation are described and analyzed. The concern is not with evaluating these trends or suggesting how future policies might be changed. The paper may, however, contribute to the formulation of future policies by bringing together in one place a brief discussion of the disparate trends that have been affecting how state and local governments tax business.


2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Hanmo Li ◽  
Mengyang Gu

AbstractThe COVID-19 outbreak is asynchronous in US counties. Mitigating the COVID-19 transmission requires not only the state and federal level order of protective measures such as social distancing and testing, but also public awareness of time-dependent risk and reactions at county and community levels. We propose a robust approach to estimate the heterogeneous progression of SARS-CoV-2 at all US counties having no less than 2 COVID-19 associated deaths, and we use the daily probability of contracting (PoC) SARS-CoV-2 for a susceptible individual to quantify the risk of SARS-CoV-2 transmission in a community. We found that shortening by $$5\%$$ 5 % of the infectious period of SARS-CoV-2 can reduce around $$39\%$$ 39 % (or 78 K, $$95\%$$ 95 % CI: [66 K , 89 K ]) of the COVID-19 associated deaths in the US as of 20 September 2020. Our findings also indicate that reducing infection and deaths by a shortened infectious period is more pronounced for areas with the effective reproduction number close to 1, suggesting that testing should be used along with other mitigation measures, such as social distancing and facial mask-wearing, to reduce the transmission rate. Our deliverable includes a dynamic county-level map for local officials to determine optimal policy responses and for the public to better understand the risk of contracting SARS-CoV-2 on each day.


Author(s):  
Adelia Jenkins ◽  
Dennis Culhane

Background Actionable Intelligence for Social Policy (AISP) is an initiative of the University of Pennsylvania that focuses on the development, use, and innovation of integrated data systems (IDS). We convene a network of IDS across the United States and provide technical assistance to support developing sites as they build the technical and human capacity to integrate and use administrative data across agencies. Main AimIn late 2018 and early 2019, AISP conducted a national survey of integrated data efforts to better understand the landscape and how it’s changed since the last national scan was completed in 2013. The survey also served to document who is leading data sharing efforts, what data they are linking, and how linked data are currently being used. This information was used to create a centralized data matrix and contact list in order to support cross-site learning and facilitate future projects and analyses. Methods/ApproachThe survey was disseminated to AISP Network Sites, Learning Community sites, and others by AISP staff and partner organizations, including the National Neighborhood Indicators Partnership Network and Arnold Policy Labs initiative. Survey responses were analyzed by AISP in spring 2019. ResultsThe survey yielded 39 responses from state and local governments and their research partners. The most common uses of integrated data among those surveyed are informing policy, program evaluation, and research. Integrated case management and resource allocation are also increasingly informed by integrated data. The most commonly integrated data sources are early childhood, child welfare, and K-12 education. Medicaid, TANF, SNAP, and UI Wage Records have also been integrated by over 50% of sites surveyed. The most common lingering challenges reported by sites related to sustainability. ConclusionSurvey results document the purposes and sources of data currently integrated by jurisdictions across the US and have major implications for the field both nationally and internationally.


2018 ◽  
Vol 18 (3) ◽  
Author(s):  
Gregory S. Burge ◽  
Cynthia L. Rogers

Abstract Currently, sales taxes are imposed at both the state and local levels in 37 US states. In these environments, vertical tax competition occurs as governments share a common sales tax base, and local jurisdictions have autonomy over sales tax rates. As cash-strapped states look to sales taxes for additional revenues, local governments may worry about potentially adverse revenue impacts, as consumers react to combined tax rate increases. This study examines state-municipal and county-municipal fiscal spillovers using an empirical approach that accounts for endogenous tax policy leadership and voter tax fatigue. Employing comprehensive longitudinal data from Oklahoma, we find that state tax hikes significantly crowd out future rate increases for the large group of jurisdictions that are designated as followers. Leader jurisdictions are not found to display crowd-out tendencies, a result that is consistent with recent work suggesting that leaders may be less influenced by vertical fiscal externalities than other jurisdictions.


2021 ◽  
Vol 19 (4) ◽  
pp. 1095-1114
Author(s):  
Jongmin Shon

This study empirically examines the effects of tax competition in both horizontal and vertical ways on the revenue capacity of counties in California from 2003 to 2015. Spatial Durbin model (SDM) identifies the effects of two-way tax competition on a county’s revenue capacity. The findings provide evidence that local sales tax helps a county expand its total revenue, but the two-way tax competition brings about a decrease in local revenue capacity as a result of spillovers. Furthermore, a lower-taxing area can have more benefits because the expansions in the neighbors are much greater than the higher-taxing one. In spite of the extant research of tax competition, this study adds another contribution to this research arena that the empirical approach of the SDM rules out the geospatial effects of the other explanatory variables that might have some unobserved effects in the extant literature.


2021 ◽  
pp. 303-328
Author(s):  
Jeffrey S. Sutton

The US Constitution never mentions “city,” “county,” or “township,” not even “local” or “municipal” governments. It concerns itself only with sovereign entities. Because local governments “cannot claim to be sovereigns” and because whatever power a local government has tends to flow from its state, that sounds like the end of the matter. But local governments still exercise sovereign powers, including law enforcement, eminent domain, education, taxing, zoning, and other indispensable “attributes of sovereignty.” Even if the US Constitution does not mention cities by name and even if cities cannot claim sovereign status, the federal charter still has ample consequences for municipal governments. This chapter takes vertical separation of powers one step further, to federalism within federalism. It explains the division of powers between state and local governments and chronicles disputes that have arisen between them. If, in modern America, like-minded people increasingly gravitate to similar states, the same is true within states, whether in cities, suburbs, or rural areas. Home rule and other local allocations of power sometimes allow people in these communities to express their distinct political preferences and live under them, too.


Urban Studies ◽  
2020 ◽  
pp. 004209802090301 ◽  
Author(s):  
Benjamin Preis ◽  
Aarthi Janakiraman ◽  
Alex Bob ◽  
Justin Steil

As housing costs continue to increase across many cities in North America and Europe, local governments face pressure to understand how housing’s rising cost is changing neighbourhoods and to ensure that everyone can access a home they can afford. To confront displacement concerns, cities are adapting models developed within academia to identify neighbourhoods that may be susceptible to gentrification and displacement. We compare four gentrification and displacement risk models developed by and for the US cities of Seattle, Washington; Los Angeles, California; Portland, Oregon; and Philadelphia, Pennsylvania, and apply all four methodologies to one city, Boston. We identify the geographic areas of agreement and disagreement among the methods. The comparison reveals striking differences between the models, both in inputs and outputs. Of the 18 variables considered among the four models, only two variables appear in all four models. In the resulting maps, the four methods identified between 25 and 119 of the 180 Boston census tracts as at risk of gentrification and displacement, or as currently gentrifying. There are only seven tracts that all four models agreed were either gentrifying or at risk of gentrification and displacement. The findings indicate a need for cities to consider critically the assumptions of the models that are included in urban policy documents, as indicators and thresholds have major impacts on how neighbourhoods in the liminal space of gentrification and displacement are characterised. This novel comparison of United States local government analyses of gentrification provides insight as modelling moves from theory to practice.


Author(s):  
Francesca Manes-Rossi ◽  
Natalia Aversano ◽  
Paolo Tartaglia Polcini

Purpose The purpose of this paper is to explore a citizen-centered tool for public accountability, the popular report (PR). Elaborating on previous studies and on content analysis of a sample of municipalities in the USA, this paper aims to identify the qualitative characteristics and content elements that PR should have to serve as a legitimation tool. Design/methodology/approach The study adopts a mixed methodology. After the analysis of previous studies on PR and best practices in US municipalities, a list of content elements and qualitative characteristics of PR is compared with results emerging from the content analysis of PR published by of a sample of municipalities in the USA. Findings The analysis reveals that the PR should embed information about the government’s sources of revenues and taxes, expenditures, cost of government services, liveability and governance of the city. Research limitations/implications The paper offers new knowledge on reporting centered on citizens, framing the analysis in the legitimacy theory. Even though the research relates only to the US context, the results may assist standard setters in preparing guidelines for local governments to communicate financial data to citizens and stimulate further research in other contexts. Practical implications The results may encourage local governments to prepare a PR suitable to discharge accountability and gain legitimation. Originality/value This study is the first to discuss the PR within a theoretical framework, in this case, legitimacy theory. Moreover, a further novelty lays in the analysis carried out on the PRs published by US municipalities in order to derive qualitative characteristics and content elements with which the PR should comply.


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