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On Tax Increase Limitations: Part I - A Costly Incoherence

5 Pages Posted: 21 Dec 2011  

David Gamage

Indiana University Maurer School of Law

Darien Shanske

University of California, Davis - School of Law

Date Written: December 19, 2011

Abstract

In this essay, the first of a series, we explore the theoretical implications of one particular type of fiscal limitation on state legislatures - namely, special rules limiting tax increases. In this first essay we will explore the analytic soundness of these tax increase limitations (TILs). In future essays in this series we will analyze some of the consequences of TILs and in particular how they can be 'evaded.' We will argue over the course of this series of essays that because there is no meaningful content to the term 'tax increase' as it is used in TILs, legislative majorities that wish to do so can readily circumvent TILs. We will then propose alternatives to TILs to better promote fiscal management at the state and local levels.

Keywords: tax increase, tax, balanced budget, tax expenditure, state and local tax. budget, fiscal policy

Suggested Citation

Gamage, David and Shanske, Darien, On Tax Increase Limitations: Part I - A Costly Incoherence (December 19, 2011). State Tax Notes, Vol. 62, No. 12, 2011. Available at SSRN: https://ssrn.com/abstract=1974886

David Gamage (Contact Author)

Indiana University Maurer School of Law ( email )

211 S. Indiana Avenue
Bloomington, IN 47405
United States

HOME PAGE: http://www.law.indiana.edu/about/people/bio.php?name=gamage-david

Darien Shanske

University of California, Davis - School of Law ( email )

400 Mrak Hall Dr
Davis, CA CA 95616-5201

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