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Article: State corporate tax revenue trends: causes and possible solutions.
- Article from:
- National Tax Journal
- Article date:
- September 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 National Tax Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
States' ability to collect taxes on business, and particularly on interstate business activity, appears to be diminishing. This should not be a surprising outcome since economists have for many years recognized the difficulties for sub-national governments to collect taxes on mobile activities (see Inman and Rubinfeld, 1997, for example). Much recent attention has been paid to the revenue losses that have resulted from the inability to collect taxes on Internet sales, and in particular on business-to-business transactions (see Bruce and Fox, 2000). (1) Reduction in state taxation of specific industries such as telecommunications (through lower rates, ...