This paper analyzes interstate exportation and importation of state-local individual income taxes, general sales taxes, excise taxes associated with travel, and property taxes on owner-occupied housing. Two principal measures are considered: direct exportation of sales and excise taxes, and indirect exportation of state-local taxes deductible against federal individual tax liabilities. A multilateral approach is developed, which pays particular attention to tax importation. Empirically, rates of net exportation vary from thirteen to minus twenty-five percent. New York and California export the largest dollar amount of taxes and have high rates of exportation, too. Texas, Ohio and Florida are major importers.
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Mutti et al. (1983) studied this question.