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The Effectiveness of Tax‐Expenditure Limitations: A Re‐evaluation
Author(s) -
Bails Dale G.
Publication year - 1990
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1990.tb02274.x
Subject(s) - revenue , tax revenue , economics , limiting , public economics , value added tax , statistical analysis , demographic economics , accounting , statistics , engineering , mathematics , mechanical engineering
A bstract . A 1982 study of the efficacy and impact of tax and expenditure limitations (TEL) is updated. Utilizing various statistical comparisons, growth in expenditures and revenues in states with TELs is compared to growth in states without a TEL in place. This comparison matches growth in the pre tax revolt years with growth in the post revolt years. In all cases the statistical tests show that the existence of a TEL has had virtually no impact on the growth of statewide expenditures or revenues. Additionally, while aggregate state expenditures and revenues exhibited some decline during the tax revolt years, this decline was short‐lived and has since been reversed. Thus, the primary implication is that TELs as presently construed are an ineffective means of limiting growth in state budgets