Social and Behavioral Sciences Commons^™

The Elimination Of The Federal Tax Deductibility Of State And Local Taxes: Possible Effects On State And Local Tax Structures, John M. Foster

MPA/MPP/MPFM Capstone Projects

Through the use of intermediaries such as elected officials and hired advocates, people choose the level of resources that will be used for public goods and services, as well as the manner in which those resources will be used. They also decide how these goods and services will be financed. The extent to which governments utilize taxes on income, wealth, and consumption is guided by considerations of political factors, equity, administrative costs, revenue adequacy, and the effects of the tax system on allocative efficiency. Incentives that are embedded in the federal tax system may also influence state and local tax …