National Tax Journal · 1973 · 47 citations · 3 references
Public AffairsEconomicsPublic FinanceState TaxationTax PolicyTaxationState Tax PolicyTax MeasuresTobacco TaxationAssessment Of State TaxesStabilizersStabilizing MechanismsState Income TaxationState Tax DifferencesState Tax Policy AnalysisTaxation HistoryTemporal Yield Stability
Three tax criteria — yield stability, yield growth, and counter-cyclical stabilizing influence — have been conceptually muddled in the literature and left in a confused state. In this study these criteria are distinguished conceptually and an empirical measure of each is defined. The performance of seven taxes is measured for all of the states that used these taxes throughout the 1932-70 period. Experience with any given tax varied greatly among the states. Although the results generally confirm expectations, individual income taxes have been less stabilizing than expected. Some of the best stabilizers are not themselves greatly unstable. Alcohol and tobacco taxes are surprisingly unstable.
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