Search Results
Journal Article
Devolution: the new federalism, an overview
In recent years, a growing number of scholars and policymakers have concluded that the federal government has become too large and powerful, intruding into affairs better handled by states and municipalities. Based on this premise, they have argued for a reduction in federal aid, the conversion of matching grants to block grants, greater flexibility for states in implementing federally funded programs, and curtailment of federal mandates. Their program is popularly referred to as devolution, the devolving of federal responsibilities to lower levels of government. The controversy that ...
Journal Article
Are state and local revenue systems becoming obsolete?
As recently as a year ago, state governments were awash in revenue, but reports from state revenue officials suggest that growth in tax receipts has slowed considerably in recent quarters. The flow of tax revenues into state coffers has decelerated primarily because the economy has suffered a severe shock (it was weakening even before September 11) and delayed tax cuts enacted in earlier, more prosperous times have taken full effect. However, many tax analysts believe that long-term economic, technological, and political trends are also partially responsible and will continue to constrain ...
Working Paper
The lack of affordable housing in New England: how big a problem?: why is it growing?: what are we doing about it?
Although housing costs in greater Boston and elsewhere around the region have leveled off, affordable housing is still high on the public policy agenda in every New England state. A growing chorus of employers and policymakers are warning that the region's high cost of housing is now undermining its ability to attract and retain workers and businesses. This paper presents a thorough, region-wide analysis of the housing affordability problem in New England. We construct three affordability indicators to examine differences in the cost of housing across socioeconomic, demographic, and ...
Journal Article
Unemployment insurance policy in New England: background and issues
Almost two-thirds of the states, and all the New England states except New Hampshire, have exhausted their unemployment insurance trust fund and borrowed from the federal government at least once during the past 35 years. Under such circumstances, states are required by law to raise unemployment insurance taxes in order to replenish their trust funds and to pay off their debts to the federal government. Since higher unemployment insurance taxes increase employer costs, replenishment forces states into a trade-off between economic competitiveness and trust fund adequacy. In recent years, ...
Journal Article
State regulatory policy and economic development
What is the effect of various state regulations on economic development? Examples include regulations affecting workers' compensation, right-to-work laws, environmental protection, and financial institutions. What problems are inherent in measuring regulatory burden and how have investigators dealt with them?
Discussion Paper
Massachusetts business taxes: unfair? inadequate? uncompetitive?
In debating Massachusetts business tax policy, protagonists have cited many different indicators purporting to assess the fairness, adequacy, and competitiveness of the Commonwealth?s business taxes. These statistics actually reveal very little about the degree to which Massachusetts business taxes achieve these widely accepted tax policy goals. The author explains why these indicators are misleading and presents new indicators of business tax competitiveness that, although imperfect, are more accurate than those most widely quoted. The article concludes that the fairness of Massachusetts ...
Journal Article
Are state government debt levels too high?
Working Paper
Measuring the incentive effects of state tax policies toward capital investment
Empirical research on the effects of differential business taxation across jurisdictions relies on the appropriate measurement of the burden of tax in each location. While numerous summary measures have been proposed and used in various contexts to make such comparisons, most fail to account for the full effects of each state's tax system and the interactions of state tax systems with both local and federal taxes. This paper addresses these issues and employs an approach used in recent state tax reform studies to measure tax burdens. The advantages of this "representative firm" approach ...
Working Paper
The subsidy from state and local tax deductibility: trends, methodological issues, and its value after federal tax reform
Even though the momentum of the "devolution" movement has slowed, federal intergovernmental grants will probably be cut substantially during the next five to ten years. Federal tax reform could further erode federal assistance by eliminating the deduction for state and local personal income and property taxes. This deduction subsidizes the net cost to taxpayers of financing an additional dollar of state and local spending. In the language of economics, deductibility reduces the marginal "tax price" of state and local public goods. This paper clarifies methodological issues in the ...