Estimating Federal Tax Burdens for Major City Areas, Counties, and U.S. Congressional Districts
Tax Foundation Working Paper No. 2
110 Pages Posted: 30 Mar 2007
Date Written: March 2007
The burden of federal taxes does not fall equally on the cities, counties and congressional districts that comprise the geographic landscape of the United States. Because tax collections figures provide little information about the true economic burden of taxes, researchers must employ various statistical methods to estimate the economic incidence of federal taxes across geographic areas. We outline a detailed methodology for modeling the burden of each federal tax - individual income, corporate income, payroll, estate and gift, and all excises - by narrow geographic areas. Using this model, we provide estimates of federal tax burdens by three geographic areas for Calendar Year 2004: major city area, county and U.S. congressional district.
Keywords: public finance, federal taxation, tax incidence, tax policy
JEL Classification: E62, H20, H22
Suggested Citation: Suggested Citation