Why Tennessee (and Every Other State) Should Have a (Broad-Based) Income Tax (and a Retail Sales Tax, too)
75 Pages Posted: 2 Apr 2008
Date Written: April 1, 2008
This paper examines the general relationship between state tax policy and state spending policy and concludes that states that rely solely (or even primarily) on either an income tax or a retail sales tax to finance state spending are pursuing an ultimately unstable course. States that seek to pursue an ultimately stable course must include in their revenue streams both an income tax and a retail sales tax.
Keywords: state income tax, sales tax
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