Ferrero, Lucas; Magalhaes, Leandro M. de - School of Economics, Finance and Management, University … - 2008
to establish a causal relation between a divided government and lower tax rates in states with line item veto. In states … residual claimant of a tax increase. In the American states two conditions are needed: the governor must have the line item … veto, and the political interests of the legislative majority and the governor must not be perfectly aligned. Political …