State Tax Policy: A Political Perspective

by David Brunori

Book Overview

State tax systems are in trouble. Revenue collecting methods developed more than a half-century ago are straining to deal with 21st century economies. Globalization and e-commerce are changing how... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0877667268
• ISBN13: 9780877667261
• Release Date: January 2006
• Publisher: Urban Institute Press
• Length: 148 Pages
• Weight: 0.55 lbs.

Customer Reviews

A great intro but beware of some faulty analysis

This book provides a basic overview of state policy and how it is represented through various lenses. Politicians, common people and businesses are all considered. The basic types of state level taxes and the reasons for their collection are all outlined. While sales taxes are among the most important they are also are supplemented by direct federal government grants. There is a lot of useful information here but the reader should be wary. The author makes a lot of opinionated claims and sites only his own work to support them. There are several things in here that are open to dispute and I would use this book as an introduction only. It does do a wonderful job of categorizing all of the issues and giving a springboard for further study. For those interested in public policy this is an essential book to have on hand for framing state tax issues.

Complex State Tax Topics Explained and Analyzed

This is an excellent book that takes complex topics of state government taxation and makes them understandable. We learn the abilities and limitations of tax systems that were basically designed in the 19th century and how they respond to 21st century challenges. These are tax systems designed upon a manufacturing economy that has diminished. Along with the devolution of Federal government programs to the states over the past two decades, state governments need to find secure revenue bases to keep state government services operational. The shifting of public services responsibility to states has awakened the corporate world. 1981 marked the first year that corporations paid more in state taxes than in Federal taxes. Thus, corporations have increased lobbying pressures on state governments. Numerous tax breaks have been afforded to businesses by states. States find themselves pitted against each other in near-death spirals of competing against each other in offering tax breaks to attract businesses away from other states. Unfortunately, the differences in state taxes have been found to matter little in business location decisions. State governments have become dependant more upon personal income tax revenues. 1998 marked the first year since the 1930s that revenues from personal sales taxes were greater than revenues from sales taxes. This reflects our changing world, as tax exempt services are an increasing part of our purchases. The growth in personal income tax share of state tax revenues has been dramatic: it was 9% in 1950 and 19% in 1970 before reaching 34% in 1998. Sales and use taxes account for almost one third and corporate income taxes account for 6% of all state tax revenues. All state tax collections account for about 40% of what states need for their budgets. The rest is gained through federal funds, lotteries, litigation (including the tobacco settlement), license fees, and selling unclaimed properties. This book shows would state government leaders should do to examine their taxes, reevaluate their policies, and realize where tax burdens falls. This is an excellent book for people wishing to learn the structure of what keep state governments functional.