Budgetary difficulties in 1985 led the Idaho Legislature to adopt special fiscal measures. They included Agency appropriation cuts and a 14-month one-cent increase in the state sales tax. Similar steps had previously been taken in 1983. Data including the 1983 temporary tax hike period are analyzed to gauge the effectiveness and potential effects of the 1985 legislation. Structural econometric, univariate ARIMA, and cross section statistical tests indicate that Idaho consumers delay purchases in anticipation of sales tax rate reductions.
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Paper provided by EconWPA in its series Public Economics with number
0408004.
Find related papers by JEL classification: H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
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