As governors and state legislators across the country search for ways to address the budgetary imbalances that many of their states face following the Great Recession, reductions in individual income tax credits and deductions are being considered. Unfortunately, the casualties of that process...

This article focuses on the total tax burden faced by wage earners and uses wages as a surrogate for any form of income not taxed at a differential rate. It varies income for single individuals across jurisdictions and assesses the relationship between wages, alternative minimum tax, and the...

Forty percent of states with a corporate income tax permit corporations to deduct income taxes paid to other states. This article argues that the state income tax deduction for taxes paid to others states violates tax logic by allowing a cost of generating tax-exempt income. Part I of the...

Under New York law at this time, non-resident taxpayers were only permitted state income tax deductions for expenses reasonably related to income earned in the state. Residents could deduct alimony payments, but non-residents could not because such expenses were considered wholly personal. Prior...

Federal deductibility for state and local taxes constitutes one of the largest tax expenditures in the federal budget and provides a significant source of federal support to state and local governments. Deductibility was restricted in the Tax Reform Act of 1986 by removing the deduction for...

We consider how state income tax changes affect the demand for municipal bonds by in-state investors. A tax increase (decrease) makes investing in municipal bonds more (less) desirable, and theory predicts a change in demand by investors until the yields on municipal bonds reach a new...

This Article argues that a deduction for state income taxes, paid to a sister state violates the normative principles of income taxation by allowing a cost of generating tax-exempt income. Forty-five states and the District of Columbia tax corporations on their net income, and forty percent of...

Individuals' state income tax payments are deductible in the year paid for federal income tax purposes. This study investigates whether, and to what extent, individuals implement federal tax planning by prepaying state estimated income taxes before year-end, even though those payments are not...