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Federal Tex Reform and the Taxation of Urban Residents

Author

Listed:
  • Andrew Reschovsky

    (Tufts University)

  • Howard Chernick

    (Hunter College)

Abstract

This article uses a microsimulation model to demonstrate that suburban residents reap larger benefits from Tax Reform than do urban residents. Tax Reform may also lead many states to reduce their reliance on income taxes. Although the direct incentives to reduce local taxes in central cities are weak, Tax Reform is likely to create stronger incentives for state governments to reduce spending, especially on programs for poor people. By creating differential price effects across different types of jurisdictions, state governments will face pressure to reduce and reallocate state aid away from central cities.

Suggested Citation

  • Andrew Reschovsky & Howard Chernick, 1989. "Federal Tex Reform and the Taxation of Urban Residents," Public Finance Review, , vol. 17(2), pages 123-157, April.
    • Handle: RePEc:sae:pubfin:v:17:y:1989:i:2:p:123-157
    DOI: 10.1177/109114218901700201
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    References listed on IDEAS

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    Cited by:

    1. Gilbert E. Metcalf, 1993. "Tax exporting, federal deductibility, and state tax structure," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 109-126.

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