Open Access. Powered by Scholars. Published by Universities.®

Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Series

2016

Articles by Maurer Faculty

Tax policy

Articles 1 - 2 of 2

Full-Text Articles in Law

The Federal Government's Power To Restrict State Taxation, David Gamage, Darien Shanske Jan 2016

The Federal Government's Power To Restrict State Taxation, David Gamage, Darien Shanske

Articles by Maurer Faculty

This essay evaluates the limits on the U.S. federal government’s powers to restrict the taxing powers of state governments. The essay revisits earlier debates on this question, to consider the implications of the Supreme Court’s decision in National Federation of Independent Business v. Sebelius and also academic research on the problem of tax cannibalization.


Tax Cannibalization And State Government Tax Incentive Programs, David Gamage, Darien Shanske Jan 2016

Tax Cannibalization And State Government Tax Incentive Programs, David Gamage, Darien Shanske

Articles by Maurer Faculty

States and localities offer businesses an enormous amount of tax incentives to locate within their jurisdictions despite: 1) the mass of evidence that suggests that these incentives are not particularly effective and, 2) substantial doubts about their constitutionality.

In this essay, we develop a new critical perspective on state tax incentives. We argue that offering these incentives permits states to offer lower taxes to more mobile businesses while keeping their overall corporate tax rates high. This is arguably not the best choice for the states, but it is definitely not the best choice for the federal government. Because the states …