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.)


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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