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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Bibliographic Details
Published inNational tax journal Vol. 42; no. 3; pp. 323 - 337
Main Authors CASE, BRADFORD, EBEL, ROBERT D.
Format Journal Article
LanguageEnglish
Published Chicago, Ill National Tax Association 01.09.1989
The University of Chicago Press
University of Chicago Press
Subjects
Aggregate income
Consumer spending
Equality
Equity
Estimated taxes
Fiscal policy
Income estimates
Income taxes
Personal income taxes
Property taxes
Regressive
Sales taxes
State income tax
State taxes
Statistical analysis
Tax credits
Tax exemptions
Tax payments
United States > US
Nevada
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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.
ISSN:0028-0283
1944-7477
DOI:10.1086/NTJ41788803