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An Alternative Tale of Two Tax Jurisdictions: A Comment
Author(s) -
Cebula Richard J.
Publication year - 1999
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.1536-7150.1999.tb03304.x
Subject(s) - revenue , per capita , economics , tax revenue , welfare economics , humanities , public economics , demography , sociology , finance , art , population
In a recent issue of this journal, Galles and Sexton (1998) evaluated California's Proposition 13 and Massachusetts' Proposition 2‐1/2. Galles and Sexton (1998, p. 123) conclude that Both initially succeeded. However, following a brief lag… governments made up lost revenues primarily through increased non‐tax fees and charges; within a decade, real per capita revenues and expenditures exceeded their pre‐revolt peaks. The present Note offers an alternative view of Propositions 13 and 2‐1/2 which, using data from Galles and Sexton (1998, Tables 1, 2), concludes that these Propositions not only yielded short‐term success for several years in terms of reduced real per capita revenues and expenditures but also may have yielded longer‐term success in terms of reducing the growth rate of real per capita revenues and expenditures. This Note also raises questions about the way in which Galles and Sexton (1998) performed their computations.