States spend billions of dollars every year on economic development activities that range from recruiting new businesses to helping local businesses expand. At the heart of each state’s economic development strategy is an agency, department, or government-supported nonprofit that coordinates the...
This report finds that both federal and state income taxes are generally progressive but (1) state systems are much less progressive than the federal system and (2) the degree of progressivity varies widely among the states. Federal income taxes became more progressive following 2012 legislation...
Every state uses a different combination of taxes to fund government services. Some rely more heavily on income taxes, and others see the most revenue from consumption taxes, such as general sales taxes or excise taxes on select goods. The effect of a state’s tax structure on economic...
Institute fellow Eric Toder testified before the US Senate Committee on Finance during a hearing entitled “Navigating Business Tax Reform.” In his testimony, Toder presented his research on the state of the corporate income tax and a review of current legislative proposals. He outlines two...
A longstanding concern of state and local governments is that a federal value-added tax (VAT) could shrink sales tax bases. But a federal VAT could have even bigger effects on other revenues and spending through changes in incomes, relative prices, and asset values. To illustrate the range of...
Many federal tax reform proposals would eliminate the state and local tax (SALT) deduction. Although deficit reduction often is the rationale, there are arguments for eliminating the deduction based on economic efficiency, equity, and improved federal fiscal policy. Eliminating the deduction,...
The Urban-Brookings Tax Policy Center’s (TPC) microsimulation model produces revenue and distributional estimates of the US federal tax system. This paper describes a reweighting procedure that allows the model to be used for analyzing taxes at the state level. We construct state weights such...
The Urban-Brookings Tax Policy Center’s (TPC) microsimulation model produces revenue and distributional estimates of the US federal tax system. This paper describes a reweighting procedure that allows the model to be used for analyzing taxes at the state level. We construct state weights such...
States vary in how much governments collect in revenue and spend on goods and services. To understand the sources of these differences, we examined what states could raise (revenue capacity) and would spend (expenditure need) if they followed national averages, taking into account their own...
State governments often use their tax system to partner with the private sector on economic development initiatives. A key part of their economic development strategy, states use tax incentives as one tool of economic development to compete with other states and globally for investment, jobs,...
What Do State Economic Agencies Do?
States spend billions of dollars every year on economic development activities that range from recruiting new businesses to helping local businesses expand. At the heart of each state’s economic development strategy is an agency, department, or government-supported nonprofit that coordinates the...
Federal-State Income Tax Progressivity
This report finds that both federal and state income taxes are generally progressive but (1) state systems are much less progressive than the federal system and (2) the degree of progressivity varies widely among the states. Federal income taxes became more progressive following 2012 legislation...
Using the Tax Structure for State Economic Development
Every state uses a different combination of taxes to fund government services. Some rely more heavily on income taxes, and others see the most revenue from consumption taxes, such as general sales taxes or excise taxes on select goods. The effect of a state’s tax structure on economic...
Approaches to Business Tax Reform
Institute fellow Eric Toder testified before the US Senate Committee on Finance during a hearing entitled “Navigating Business Tax Reform.” In his testimony, Toder presented his research on the state of the corporate income tax and a review of current legislative proposals. He outlines two...
Effects of a Federal Value-Added Tax on State and Local Budgets
A longstanding concern of state and local governments is that a federal value-added tax (VAT) could shrink sales tax bases. But a federal VAT could have even bigger effects on other revenues and spending through changes in incomes, relative prices, and asset values. To illustrate the range of...
Revisiting the State and Local Tax Deduction
Many federal tax reform proposals would eliminate the state and local tax (SALT) deduction. Although deficit reduction often is the rationale, there are arguments for eliminating the deduction based on economic efficiency, equity, and improved federal fiscal policy. Eliminating the deduction,...
Incorporating State Analysis into the Tax Policy Center's Microsimulation Model: Documentation and Methodology
The Urban-Brookings Tax Policy Center’s (TPC) microsimulation model produces revenue and distributional estimates of the US federal tax system. This paper describes a reweighting procedure that allows the model to be used for analyzing taxes at the state level. We construct state weights such...
Incorporating State Analysis into the Tax Policy Center's Microsimulation Model: Documentation and Methodology
The Urban-Brookings Tax Policy Center’s (TPC) microsimulation model produces revenue and distributional estimates of the US federal tax system. This paper describes a reweighting procedure that allows the model to be used for analyzing taxes at the state level. We construct state weights such...
Assessing Fiscal Capacities of States: A Representative Revenue System–Representative Expenditure System Approach, Fiscal Year 2012
States vary in how much governments collect in revenue and spend on goods and services. To understand the sources of these differences, we examined what states could raise (revenue capacity) and would spend (expenditure need) if they followed national averages, taking into account their own...
State Tax Incentives for Economic Development
State governments often use their tax system to partner with the private sector on economic development initiatives. A key part of their economic development strategy, states use tax incentives as one tool of economic development to compete with other states and globally for investment, jobs,...