Testing the determinants of state business tax burdens

A regional diffusion theory explanation for states’ proposal and adoption of anti-passive investment company laws

“…Specifically, taxation and other governmental policies result from the competing demands of conflicting interest groups, all of whom have the goal of wealth maximization (Peltzman, 1984). In pursuit of wealth maximization, interest groups transfer resources to politicians and policy makers in order to influence the political process (Peltzman, 1976;Vines et al, 1994). Thus, taxation policies are partially determined by competition among competing interest groups (Becker, 1983).…”

“…Thus, taxation policies are partially determined by competition among competing interest groups (Becker, 1983). Both corporate (i.e., businesses) and individual taxpayers (i.e., the public at large) represent competing economic groups in the development of tax policy (Vines et al, 1994). The enactment of an anti-PIC statute is effectively an increase in state corporate income taxes for businesses that have established PICs.…”

“…Even if fiscal health is not the primary cause, the presence of a fiscal crisis may make a state's policy officials more receptive to taxation policy changes (Vines et al, 1994). Poor fiscal health is strongly linked to an increase in the probability of adoption of a new revenue source such as a state lottery (Berry and Berry, 1992).…”

“…Since larger businesses are expected to oppose anti-PIC statutes and are more likely to have the necessary resources to block such measures, a negative relationship is expected between FIRMS100 and ADOPT (PROPOSE). Following Vines et al (1994), these interest group variables are lagged one year.…”

A regional diffusion theory explanation for states’ proposal and adoption of anti-passive investment company laws

“…Specifically, taxation and other governmental policies result from the competing demands of conflicting interest groups, all of whom have the goal of wealth maximization (Peltzman, 1984). In pursuit of wealth maximization, interest groups transfer resources to politicians and policy makers in order to influence the political process (Peltzman, 1976;Vines et al, 1994). Thus, taxation policies are partially determined by competition among competing interest groups (Becker, 1983).…”

“…Thus, taxation policies are partially determined by competition among competing interest groups (Becker, 1983). Both corporate (i.e., businesses) and individual taxpayers (i.e., the public at large) represent competing economic groups in the development of tax policy (Vines et al, 1994). The enactment of an anti-PIC statute is effectively an increase in state corporate income taxes for businesses that have established PICs.…”

“…Even if fiscal health is not the primary cause, the presence of a fiscal crisis may make a state's policy officials more receptive to taxation policy changes (Vines et al, 1994). Poor fiscal health is strongly linked to an increase in the probability of adoption of a new revenue source such as a state lottery (Berry and Berry, 1992).…”

“…Since larger businesses are expected to oppose anti-PIC statutes and are more likely to have the necessary resources to block such measures, a negative relationship is expected between FIRMS100 and ADOPT (PROPOSE). Following Vines et al (1994), these interest group variables are lagged one year.…”

GASB Statement No. 34:Research Opportunities

“…Governmental entities can have a great deal of latitude in issuing debt, levying taxes (Vines et al, 1994), and setting user fees. While some locales require voter referendum of debt issues, others have little direct voter control beyond what is referred to as`voting-with-their-feet' (i.e., moving their residence).…”

A regional diffusion theory explanation for states’ proposal and adoption of anti-passive investment company laws

“…Specifically, taxation and other governmental policies result from the competing demands of conflicting interest groups, all of whom have the goal of wealth maximization (Peltzman, 1984). In pursuit of wealth maximization, interest groups transfer resources to politicians and policy makers in order to influence the political process (Peltzman, 1976;Vines et al, 1994). Thus, taxation policies are partially determined by competition among competing interest groups (Becker, 1983).…”

“…Thus, taxation policies are partially determined by competition among competing interest groups (Becker, 1983). Both corporate (i.e., businesses) and individual taxpayers (i.e., the public at large) represent competing economic groups in the development of tax policy (Vines et al, 1994). The enactment of an anti-PIC statute is effectively an increase in state corporate income taxes for businesses that have established PICs.…”

“…Even if fiscal health is not the primary cause, the presence of a fiscal crisis may make a state's policy officials more receptive to taxation policy changes (Vines et al, 1994). Poor fiscal health is strongly linked to an increase in the probability of adoption of a new revenue source such as a state lottery (Berry and Berry, 1992).…”

“…Since larger businesses are expected to oppose anti-PIC statutes and are more likely to have the necessary resources to block such measures, a negative relationship is expected between FIRMS100 and ADOPT (PROPOSE). Following Vines et al (1994), these interest group variables are lagged one year.…”

GASB Statement No. 34:Research Opportunities

“…Governmental entities can have a great deal of latitude in issuing debt, levying taxes (Vines et al, 1994), and setting user fees. While some locales require voter referendum of debt issues, others have little direct voter control beyond what is referred to as`voting-with-their-feet' (i.e., moving their residence).…”

A regional diffusion theory explanation for states’ proposal and adoption of anti-passive investment company laws

“…Specifically, taxation and other governmental policies result from the competing demands of conflicting interest groups, all of whom have the goal of wealth maximization (Peltzman, 1984). In pursuit of wealth maximization, interest groups transfer resources to politicians and policy makers in order to influence the political process (Peltzman, 1976;Vines et al, 1994). Thus, taxation policies are partially determined by competition among competing interest groups (Becker, 1983).…”

“…Thus, taxation policies are partially determined by competition among competing interest groups (Becker, 1983). Both corporate (i.e., businesses) and individual taxpayers (i.e., the public at large) represent competing economic groups in the development of tax policy (Vines et al, 1994). The enactment of an anti-PIC statute is effectively an increase in state corporate income taxes for businesses that have established PICs.…”

“…Even if fiscal health is not the primary cause, the presence of a fiscal crisis may make a state's policy officials more receptive to taxation policy changes (Vines et al, 1994). Poor fiscal health is strongly linked to an increase in the probability of adoption of a new revenue source such as a state lottery (Berry and Berry, 1992).…”

“…Since larger businesses are expected to oppose anti-PIC statutes and are more likely to have the necessary resources to block such measures, a negative relationship is expected between FIRMS100 and ADOPT (PROPOSE). Following Vines et al (1994), these interest group variables are lagged one year.…”

GASB Statement No. 34:Research Opportunities

“…Governmental entities can have a great deal of latitude in issuing debt, levying taxes (Vines et al, 1994), and setting user fees. While some locales require voter referendum of debt issues, others have little direct voter control beyond what is referred to as`voting-with-their-feet' (i.e., moving their residence).…”