Fiscal competition and tax instrument choice: the role of income inequality
School districts in Ohio have the choice of two tax instruments with which to raise revenue: the property tax and a residence-based income tax. Economic theory predicts that local governments, if given the choice, would prefer to diversify their tax base to reduce the political costs associated with excessive reliance on one tax. Why then, do some school districts not utilize the income tax? This paper extends earlier work on this issue by showing that income inequality is negatively associated with the choice of an income tax.
Volume (Year): 8 (2006)
Issue (Month): 12 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Spry John Arthur, 2005. "The Effects of Fiscal Competition on Local Property and Income Tax Reliance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-21, January.
- J. Biegeleisen & David Sjoquist, 1988. "Rational voting applied to choice of taxes," Public Choice, Springer, vol. 57(1), pages 39-47, April.
- Romer, Thomas & Rosenthal, Howard & Munley, Vincent G., 1992. "Economic incentives and political institutions: Spending and voting in school budget referenda," Journal of Public Economics, Elsevier, vol. 49(1), pages 1-33, October.
- Jan K. Brueckner & Luz A. Saavedra, 2000.
"Do Local Governments Engage in Strategic Property-Tax Competition?,"
Econometric Society World Congress 2000 Contributed Papers
0357, Econometric Society.
- Brueckner, Jan K. & Saavedra, Luz A., 2001. "Do Local Governments Engage in Strategic Property-Tax Competition?," National Tax Journal, National Tax Association, vol. 54(n. 2), pages 203-30, June.
- David L. Sjoquist & Sally Wallace & Barbara Edwards, 2004. "What a tangled web: local property, income and sales taxes," Chapters, in: City Taxes, City Spending, chapter 3 Edward Elgar Publishing.
- Winer, Stanley L. & Hettich, Walter, 1998. "What Is Missed If We Leave Out Collective Choice in the Analysis of Taxation," National Tax Journal, National Tax Association, vol. 51(n. 2), pages 373-89, June.
- Hettich, Walter & Winer, Stanley, 1984. "A positive model of tax structure," Journal of Public Economics, Elsevier, vol. 24(1), pages 67-87, June.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Romer, Thomas & Rosenthal, Howard, 1982. "Median Voters or Budget Maximizers: Evidence from School Expenditure Referenda," Economic Inquiry, Western Economic Association International, vol. 20(4), pages 556-78, October.
- Nechyba, Thomas J, 1997.
"Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion,"
Journal of Political Economy,
University of Chicago Press, vol. 105(2), pages 351-84, April.
- Thomas J. Nechyba, 1996. "Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion," NBER Working Papers 5419, National Bureau of Economic Research, Inc.
- Balsdon, Ed & Brunner, Eric J. & Rueben, Kim, 2003. "Private demands for public capital: evidence from school bond referenda," Journal of Urban Economics, Elsevier, vol. 54(3), pages 610-638, November.
- Paul R. Blackley & Larry DeBoer, 1987. "Tax Base Choice by Local Governments," Land Economics, University of Wisconsin Press, vol. 63(3), pages 227-236.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-06h70060. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.