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State-local business taxation and the benefits principle

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  • William H. Oakland
  • William A. Testa

Abstract

This article advances the proposition that general business taxation should be structured to recover the costs of public services rendered to the business community. Estimates of one possible form of such a tax structure are offered for states of the Seventh District and for other U.S. regions.

Suggested Citation

  • William H. Oakland & William A. Testa, 1996. "State-local business taxation and the benefits principle," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 20(Jan), pages 2-19.
    • Handle: RePEc:fip:fedhep:y:1996:i:jan:p:2-19:n:v.20no.1
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    References listed on IDEAS

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    1. Papke, Leslie E., 1991. "Interstate business tax differentials and new firm location : Evidence from panel data," Journal of Public Economics, Elsevier, vol. 45(1), pages 47-68, June.
    2. Robert Tannenwald, 1994. "Massachusetts' tax competitiveness," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 31-49.
    3. Timothy J. Bartik, 1991. "The Effects of Property Taxes and Other Local Policies on the Intrametropolitan Pattern of Business Location," Book chapters authored by Upjohn Institute researchers, in: Henry W. Herzog & Alan M Schlottmann (ed.),Industry Location and Public Policy, pages 57-80, W.E. Upjohn Institute for Employment Research.
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    Cited by:

    1. DiNatale, Sadie & Lewis, Rebecca & Parker, Robert, 2018. "Short-term rentals in small cities in Oregon: Impacts and regulations," Land Use Policy, Elsevier, vol. 79(C), pages 407-423.
    2. Theodore M. Crone, 1997. "Where have all the factory jobs gone - and why?," Business Review, Federal Reserve Bank of Philadelphia, issue May, pages 3-18.
    3. David Merriman, 2016. "What determines the level of local business property taxes?," Working Papers 16-2, Federal Reserve Bank of Boston.
    4. Robert Tannenwald, 2000. "The neutrality of Massachusetts' taxation of financial institutions," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 41-56.
    5. Timothy J. Bartik, 2004. "Incentive Solutions," Upjohn Working Papers 04-99, W.E. Upjohn Institute for Employment Research.
    6. Daphne A. Kenyon, 1997. "Theories of interjurisdictional competition," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 13-36.
    7. Goodspeed, Timothy J., 1998. "Tax Competition, Benefit Taxes, and Fiscal Federalism," National Tax Journal, National Tax Association, vol. 51(n. 3), pages 579-86, September.
    8. Dye, Richard F. & Merriman, David F., 2000. "The Effects of Tax Increment Financing on Economic Development," Journal of Urban Economics, Elsevier, vol. 47(2), pages 306-328, March.
    9. Jerram C. Betts & Cletus C. Coughlin, 1996. "The location of new foreign-owned manufacturing plants in the United States and Seventh Federal Reserve District," Assessing the Midwest Economy GL-5, Federal Reserve Bank of Chicago.
    10. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers 03-91, W.E. Upjohn Institute for Employment Research.
    11. William H. Oakland & William A. Testa, 2000. "The Benefit Principle as a Preferred Approach to Taxing Business in the Midwest," Economic Development Quarterly, , vol. 14(2), pages 154-164, May.
    12. Drucker, Joshua & Funderburg, Richard & Merriman, David & Weber, Rachel, 2020. "Do local governments use business tax incentives to compensate for high business property taxes?," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    13. Timothy J. Bartik, 2006. "How Do the Effects of Local Growth on Employment Rates Vary With Initial Labor Market Conditions," Upjohn Working Papers 09-148, W.E. Upjohn Institute for Employment Research.
    14. Alberto Porto, 2017. "Impuestos Subnacionales sobre la Producción. Aportes para la Discusión de la Reforma Tributaria," Department of Economics, Working Papers 113, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    15. Jiří Čermák & Martin Gürtler, 2014. "Influence of Criteria of Built-up Areas in the Village to the Total Share of Municipalities on Shared Taxes," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 17(1), pages 43-59.
    16. Alberto Porto & Marcelo Garriga & Walter Rosales, 2017. "El Impuesto a los Ingresos Brutos y Alternativas de Reforma," IIE, Working Papers 112, IIE, Universidad Nacional de La Plata.
    17. Alberto Porto, 2017. "Impuestos Subnacionales sobre la Producción. Aportes para la Discusión de la Reforma Tributaria," IIE, Working Papers 113, IIE, Universidad Nacional de La Plata.
    18. Goodspeed, Timothy J., 1998. "Tax Competition, Benefit Taxes, and Fiscal Federalism," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(3), pages 579-586, September.
    19. Fox, William F. & Luna, LeAnn, 2002. "State Corporate Tax Revenue Trends: Causes and Possible Solutions," National Tax Journal, National Tax Association;National Tax Journal, vol. 55(3), pages 491-508, September.

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