Federalism in Taxation: The Case for Greater Uniformity

Federalism in Taxation: The Case for Greater Uniformity

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While the European Community is moving toward more uniform internal taxation, the United States in moving in the opposite direction. The relative prominence of state and local taxes is steadily increasing, together with the power of state and local governments to export tax burdens, impose high tax-planning and compliance costs on national businesses, and discriminate against interstate commerce. While arguing for greater national uniformity in taxation, the author recognizes that diversity in policy should reflect varying local preferences and preserve competition between state and local governments for businesses and residents. He believes that a proper balance between these ends and locational neutrality requires confining interstate tax competition largely to tax rates. The volume concludes with detailed suggestions for congressional action or, as an alternative, more stringent judicial review of state and local taxes that affect interstate commerce.

Publication Date

1993

Federalism in Taxation: The Case for Greater Uniformity

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