Social and Behavioral Sciences Commons^™

Comparing Tax Structures In Washington And Oregon: Tax Burden Impacts On Grocery Consumption, Devin Bales, Colin Gibson

Student Research Symposium

Washington and Oregon states rely on different tax systems. Washington collects sales tax but no personal income tax, while Oregon collects a personal income tax but no sales tax. These differences create an opportunity to measure the effects of tax policy on consumer spending. Previous literature has estimated the effect of border tax differences on aggregate spending patterns. This paper uses a hierarchical model to measure the effect of individual sales tax burden on individual-level spending. First, using data from the Consumer Expenditure survey, we estimate individual sales tax burden. Then, using these estimates in a second-stage regression simulation model, …