Abstract
Federal tax policy affects states and localities in at least four ways. First, it grants tax preferences such as deductions for taxes and tax exempt bonds. Secondly, it has indirect effects, espe- cially on interest rates. Thirdly, when states conform to the federal base to simplify compliance and administration, changes in the federal base have implications for state revenues. Finally, the federal government imposes restrictions and mandates. While federal policy has been very protective of direct preferences, and states and local governments are given a fairly free hand with these benefi ts, in the other cases, state concerns appear to have little impact.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
