Tag Archives: States

Washington just awarded the largest state tax subsidy in U.S. history

From the Washington Post: With the stroke of a pen, Washington Gov. Jay Inslee (D) on Monday signed into law the largest corporate tax break any state has ever given to a single company. And it took just three days … Continue reading

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On the Origin of States: Stationary Bandits and Taxation in Eastern Congo

From Raul Sanchez de la Sierra: The state is among the greatest developments in human history and a precursor of economic growth. Why do states arise, and when do they fail to arise? A dominant view across disciplines is that states … Continue reading

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Can Lower Taxes Be Bought? The Role of Business Rent-Seeking

Robert Chirinko and Dan Wilson have a paper in which they estimate the economic value of $1 corporate donation in terms of lower corporate tax liabilities and find it is worth roughly $6.65. Abstract: The standard model of strategic tax competition assumes that … Continue reading

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The Rise of the States: U.S. Fiscal Decentralization in the Postwar Period

Katherine Baicker, Jeffrey Clemens, and Monica Singhal have an informative paper on the rising importance of states & fiscal decentralization since the 1950s. ABSTRACT: One of the most dramatic changes in the fiscal federalism landscape during the postwar period has been the … Continue reading

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When more states look like Florida, will we spend too little on Education?

The combination of raising healthcare costs (mostly via Medicaid at the state level), pension obligations, lower employment to population ratios and thus tax revenues, balanced budget requirements, state tax competition, the reluctance to raise taxes in general and mobility concerns … Continue reading

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Coveting Thy Neighbor’s Manufacturing – Is State Tax Competition A Zero Sum Game?

Many people have been focused on state tax incentives of late. Earlier I posted about some work by Moretti and Greenstone that concludes local subsidies improve residents’ welfare (perhaps partly due to sizable employment spillovers). With that in mind, I wanted … Continue reading

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A Problem with Federalism

The job market paper of Steven Rogers entitled “Accountability in a Federal System: How Parties Perform in Office and State Legislative Elections” highlights a reason why accountability may be weak under powerful state political systems. ABSTRACT: Theories of political accountability suggest … Continue reading

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