A Primer On State and Local Tax Policy: Trade-Offs Among Tax Instruments

 

 

 

 

” The choice of tax instruments by a state or local government has wide-ranging implications for the economy, and the amount of revenue to be raised should not be the sole criterion used in developing tax policy. The trade-offs between various tax instruments, including revenue, fairness, and collection cost, should all be incorporated in these decisions.

  In a new study for the Mercatus Center at George Mason University, Justin M. Ross defines five criteria for evaluating tax policy and uses them to give a clear overview of the different types of taxes utilized by state and local governments.

  For the complete study, see “A Primer on State and Local Tax Policy: Trade-Offs among Tax Instruments.” “