USING STATE CONSUMER TAX CREDITS FOR ACHIEVING EQUITY
The past decade has seen a rapid increase in state and local revenues relative to those of the federal government. In order to have a policy environment conducive to fiscal planning and economic development, state policymakers have become especially sensitive to designing fiscal policies that meet t...
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Published in | National tax journal Vol. 42; no. 3; pp. 323 - 337 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Chicago, Ill
National Tax Association
01.09.1989
The University of Chicago Press University of Chicago Press |
Subjects | |
Online Access | Get full text |
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Summary: | The past decade has seen a rapid increase in state and local revenues relative to those of the federal government. In order to have a policy environment conducive to fiscal planning and economic development, state policymakers have become especially sensitive to designing fiscal policies that meet the tests of revenue adequacy, stability over the business cycle, and neutrality. However, what is likely to be traded off is the goal of vertical equity. The states have tended to shift toward increased reliance on regressive tax sources. A comprehensive study of the state and local tax system of Nevada provides data for reviewing the tools for vertical equity and examines the policy issues and the technical methodology that underlies the analysis. The basic finding is that a tax credit provides a flexible tool to promote a combination of tax policy goals, including vertical equity. |
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ISSN: | 0028-0283 1944-7477 |
DOI: | 10.1086/NTJ41788803 |