Volatility & state tax competition – are states relying too much on income and sales taxes?

Tyler Cowen has a post today about an interesting job market paper by Nathan Seegert of U Michigan.

I haven’t had a chance to read it closely but from a superficial glance, it seems that states have been relying more on sales taxes and/or income taxes relative to corporate taxes.

Here is a nice figure showing the number of changes from his paper. (Note that I would have loved to see a version of this chart that reflects the magnitudes rather than the frequency of changes.)

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About ozidar

I'm an Assistant Professor of Economics at the University of Chicago Booth School of Business and a Faculty Research Fellow at National Bureau of Economic Research. You can follow me on twitter @omzidar. http://faculty.chicagobooth.edu/owen.zidar/index.html
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