Tax Policy

Research

The Economic Situation, March 2013 Bruce Yandle \| Mar 01, 2013 There was only one lane open as I made my trip to Atlanta; the other three were blocked with those unhappy yellow and black make-believe barrels used by the highway folks. Traffic flow was constrained by efforts to repair potholes and broken pavement. We in the slow lane had little choice in the matter. Instead of 70, we were slowed to 20 miles per hour. We had to accept our fate, or find another route at the next exit.	Why the United States Needs to Restructure the Corporate Income Tax Jason J. Fichtner, Nick Tuszynski \| Nov 02, 2011 Firms respond to high tax rates and relocate economic activity to lower-tax countries. Thus, the current U.S. corporate tax structure places U.S.-headquartered corporations at a tremendous disadvantage in the global marketplace because other countries have lowered their corporate income tax rates to welcome multinational corporations. This paper discusses the economic implications of corporate taxes.
Illinois's Fiscal Breaking Points Eileen Norcross, Benjamin J. VanMetre \| Oct 11, 2011 It is important to understand that Illinois’s current fiscal crisis is not the result of a single critical event but rather a series of events in Illinois’s economic and fiscal history. This paper uncovers why Illinois's 2012 budget strategies are unlikely to work.	The Internet, Sales Taxes, and Tax Competition Veronique de Rugy, Adam Thierer \| Oct 11, 2011 This paper considers the economic implications of an internet sales tax and its effect on trade and competition between states.
Tax Rates and Migration Antony Davies, John Pulito \| Aug 08, 2011 This paper takes a look at how increases in the top marginal income-tax rate affect the number of high-income households within a state.	Excise Taxes in the States Thomas Stratmann, William Bruntrager \| Jun 20, 2011 This working paper is a foundational piece that presents a comprehensive accounting of all known local, state, and federal excise taxes, a brief history and chronology of each, and their respective “values” relative to total tax revenues.

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Testimony & Comments

State and Municipal Debt: The Coming Crisis?

Eileen Norcross | Feb 09, 2011

Eileen Norcross testified before the U.S. House Committee on Oversight and Government Reform on the looming municipal debt crisis.

Research Summaries & Toolkits

A Comparison of Indices that Rank State Economic Competitiveness

Emily Washington | Dec 20, 2011

Several public policy organizations have published studies that rank state economic competitiveness. This piece looks at the overlap between three indices and draws lessons for state policymakers.

Expert Commentary

There's Nothing Fair About an Internet Sales Tax U.S. News and World Report By Nita Ghei \| May 06, 2013 Just a few years ago, retail giant Amazon primarily stood on the sidelines of the debate over federal legislation – dubbed the Main Street Fairness Act – to require online retailers to collect sales taxes. But now Amazon is front and center supporting the current iteration of the bill wending its way through Congress. Amazon's support aside, the tax revenues that states may be able to extract would be far dwarfed by the damage the legislation inflicts on growth, innovation and competition, and by further entrenching cronyism in our already troubled economy.	Californians Stifled By Lack of Freedoms San Diego Union-Tribune By William Ruger, Jason Sorens \| Apr 08, 2013 If you’re finding it harder and harder to live in California, you’re not alone.
Freedom and Prosperity: Some Comparative Historical Reflections on State Policies and Performance Pileus By Jason Sorens \| Apr 08, 2013 States like California and New York are living off the accumulated capital of past economic freedom. Now that the political tide has turned decisively against economic freedom in those states, they are shedding people and jobs and growing more slowly than the rest of the country. Places like the Dakotas, Carolinas, Oklahoma, and Texas, which have reversed their anti-market policies of the past, represent America’s dynamic economic future.	Study of States Shows Freedom Works Best Washington Examiner By Veronique de Rugy \| Apr 05, 2013 People follow jobs, and jobs follow freedom. That's one of the main results from the third and much improved edition of the Mercatus Center's "Freedom in the Fifty States: Index of Personal and Economic Freedom."
States Limiting Freedom Pushes People Out USA Today By William Ruger, Jason Sorens \| Mar 28, 2013 Google's auto-complete feature has long been a source of amusement, but as a recent feature on BuzzFeed makes clear, it also says a lot about what it's like to live and work in different states in the country.	Motor City Can’t Drive Itself Anymore U.S. News and World Report By Emily Washington \| Mar 05, 2013 Michigan Gov. Rick Snyder recently announced that he would assign an emergency financial manager to Detroit, stating that the city cannot feasibly pay back its $14 billion in debt and long-term liabilities. The governor asserted that local policymakers have failed to provide basic services that Michigan municipalities are required to provide their residents.

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Charts

Amazon's Internet Sales in Perspective

This chart puts Amazon’s domestic sales in perspective with total retail sales.

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Experts

Eileen Norcross

Eileen Norcross is a senior research fellow at the Mercatus Center at George Mason University. Her primary research interests include fiscal federalism and institutions, state and local governments, and economic development.

Emily Washington

Emily Washington is a Policy Research Manager for the Mercatus Center at George Mason University. She manages the Spending and Budget Initiative and State and Local Policy Project portfolios.

Videos

Veronique de Rugy and Will Ruger Discuss Freedom in the 50 States on Stossel

Veronique de Rugy, William Ruger | May 03, 2013

Freedom in the 50 States 2013

William Ruger, Jason Sorens | March 28, 2013

Podcasts

Jason Sorens Discusses Freedom in Virginia on Virginia Public Radio

Jason Sorens | April 23, 2013

Jason Sorens Discusses Freedom in Virginia on Virginia Public Radio based on the 2013 edition of Freedom in the 50 States.

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Recent Events

How Tax and Expenditure Limitations Affect State Budgets

Join us to discuss these questions: • Do TELs Limit Budget Growth? • What do states need to know before implementing a TEL? • How would a TEL affect your state? Matthew Mitchell, Research Fellow, Mercatus Center at George Mason University Assembly Member Micah Kellner, New York 65th District Nick Kasprak, Programmer and Analyst, Tax Foundation…

The Economic Situation, March 2013 Bruce Yandle \| Mar 01, 2013 There was only one lane open as I made my trip to Atlanta; the other three were blocked with those unhappy yellow and black make-believe barrels used by the highway folks. Traffic flow was constrained by efforts to repair potholes and broken pavement. We in the slow lane had little choice in the matter. Instead of 70, we were slowed to 20 miles per hour. We had to accept our fate, or find another route at the next exit.	Why the United States Needs to Restructure the Corporate Income Tax Jason J. Fichtner, Nick Tuszynski \| Nov 02, 2011 Firms respond to high tax rates and relocate economic activity to lower-tax countries. Thus, the current U.S. corporate tax structure places U.S.-headquartered corporations at a tremendous disadvantage in the global marketplace because other countries have lowered their corporate income tax rates to welcome multinational corporations. This paper discusses the economic implications of corporate taxes.
Illinois's Fiscal Breaking Points Eileen Norcross, Benjamin J. VanMetre \| Oct 11, 2011 It is important to understand that Illinois’s current fiscal crisis is not the result of a single critical event but rather a series of events in Illinois’s economic and fiscal history. This paper uncovers why Illinois's 2012 budget strategies are unlikely to work.	The Internet, Sales Taxes, and Tax Competition Veronique de Rugy, Adam Thierer \| Oct 11, 2011 This paper considers the economic implications of an internet sales tax and its effect on trade and competition between states.
Tax Rates and Migration Antony Davies, John Pulito \| Aug 08, 2011 This paper takes a look at how increases in the top marginal income-tax rate affect the number of high-income households within a state.	Excise Taxes in the States Thomas Stratmann, William Bruntrager \| Jun 20, 2011 This working paper is a foundational piece that presents a comprehensive accounting of all known local, state, and federal excise taxes, a brief history and chronology of each, and their respective “values” relative to total tax revenues.

There's Nothing Fair About an Internet Sales Tax U.S. News and World Report By Nita Ghei \| May 06, 2013 Just a few years ago, retail giant Amazon primarily stood on the sidelines of the debate over federal legislation – dubbed the Main Street Fairness Act – to require online retailers to collect sales taxes. But now Amazon is front and center supporting the current iteration of the bill wending its way through Congress. Amazon's support aside, the tax revenues that states may be able to extract would be far dwarfed by the damage the legislation inflicts on growth, innovation and competition, and by further entrenching cronyism in our already troubled economy.	Californians Stifled By Lack of Freedoms San Diego Union-Tribune By William Ruger, Jason Sorens \| Apr 08, 2013 If you’re finding it harder and harder to live in California, you’re not alone.
Freedom and Prosperity: Some Comparative Historical Reflections on State Policies and Performance Pileus By Jason Sorens \| Apr 08, 2013 States like California and New York are living off the accumulated capital of past economic freedom. Now that the political tide has turned decisively against economic freedom in those states, they are shedding people and jobs and growing more slowly than the rest of the country. Places like the Dakotas, Carolinas, Oklahoma, and Texas, which have reversed their anti-market policies of the past, represent America’s dynamic economic future.	Study of States Shows Freedom Works Best Washington Examiner By Veronique de Rugy \| Apr 05, 2013 People follow jobs, and jobs follow freedom. That's one of the main results from the third and much improved edition of the Mercatus Center's "Freedom in the Fifty States: Index of Personal and Economic Freedom."
States Limiting Freedom Pushes People Out USA Today By William Ruger, Jason Sorens \| Mar 28, 2013 Google's auto-complete feature has long been a source of amusement, but as a recent feature on BuzzFeed makes clear, it also says a lot about what it's like to live and work in different states in the country.	Motor City Can’t Drive Itself Anymore U.S. News and World Report By Emily Washington \| Mar 05, 2013 Michigan Gov. Rick Snyder recently announced that he would assign an emergency financial manager to Detroit, stating that the city cannot feasibly pay back its $14 billion in debt and long-term liabilities. The governor asserted that local policymakers have failed to provide basic services that Michigan municipalities are required to provide their residents.