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Individual Tax Rates and Regional Tax Revenues: A Cross-State Analysis

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  • Hakan Yilmazkuday

    (Department of Economics, Florida International University)

Abstract

This paper analyzes the effects of state-level personal tax rates on state tax revenue and individual welfare. The policy analysis based on a general equilibrium model suggests that tax revenues would benefit from higher wage-income, sales or property taxes, while any increase in dividend-income tax would result in a reduction of revenues. It is also shown that individuals would suffer from an increase in state-level wage-income tax, dividend-tax or sales tax, while they would benefit from an increase in property taxes. The heterogeneity across states is determined by a TaxIndex, a weighted average of initial taxes at the state level.

Suggested Citation

  • Hakan Yilmazkuday, 2015. "Individual Tax Rates and Regional Tax Revenues: A Cross-State Analysis," Working Papers 1507, Florida International University, Department of Economics.
    • Handle: RePEc:fiu:wpaper:1507
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    References listed on IDEAS

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    1. Individual Tax Rates and Regional Tax Revenues: A Cross-State Analysis
      by Hakan Yilmazkuday in Hakan Yilmazkuday's Blog on 2016-06-13 21:08:00

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    Cited by:

    1. Viktor P. Ivanitsky & Dmitry N. Gabyshev & Larisa D. Zubkova, 2019. "Individual income tax: New opportunities for management," Upravlenets, Ural State University of Economics, vol. 10(5), pages 41-51, October.
    2. Ayoki, Milton, 2017. "Estimating the Revenue Impacts of Tax Harmonisation," MPRA Paper 83548, University Library of Munich, Germany.

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    More about this item

    Keywords

    Regional Taxes; State Tax Revenue; Individual Welfare;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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