On Tax Increase Limitations: Part II — Evasion and Transcendence

6 Pages Posted: 24 Apr 2012  

David Gamage

Indiana University Maurer School of Law

Darien Shanske

University of California, Davis - School of Law

Date Written: April 24, 2012

Abstract

In this essay, the second of a series, we continue our evaluation of state Tax Increase Limitations (TILs) – special rules that limit state legislatures’ ability to raise taxes, such as by requiring supermajority votes. We analyze two strategies whereby majority parties can evade TILs to the extent they so desire. We further argue that these strategies have some positive normative features. The strategies designed to evade TILs may ultimately lead toward a more effective means for controlling the size of state government than TILs themselves are able to provide.

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

JEL Classification: E62

Suggested Citation

Gamage, David and Shanske, Darien, On Tax Increase Limitations: Part II — Evasion and Transcendence (April 24, 2012). State Tax Notes, Vol. 64, No. 4, 2012. Available at SSRN: https://ssrn.com/abstract=2045663

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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