The Lifetime Incidence of State and Local Taxes: Measuring Changes During the 1980s

48 Pages Posted: 16 Aug 2010

See all articles by Gilbert E. Metcalf

Gilbert E. Metcalf

Tufts University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: January 1993

Abstract

I compute the lifetime tax incidence of the major state and local taxes used in the United States during the 1980s. Using data from the Consumer Expenditure Survey, I show that over the life cycle, general sales taxes are progressive and equally as progressive as state and local income taxes. While the progressivity of sales taxes has not changed between 1984 and 1989, income taxes have become less progressive over that five-year period. Property taxes on the other hand have become more progressive. The system of state and local taxes is mildly progressive the life cycle and has become slightly more progressive between 1984 and 1989. Finally. eliminating deductibility for sales taxes in 1986 appears to have had little effect on the overall progressivity of the tax system.

Suggested Citation

Metcalf, Gilbert E., The Lifetime Incidence of State and Local Taxes: Measuring Changes During the 1980s (January 1993). NBER Working Paper No. w4252. Available at SSRN: https://ssrn.com/abstract=1659527

Gilbert E. Metcalf (Contact Author)

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States
617-627-3685 (Phone)
617-627-3917 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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