This paper examines the effect of federal deductibility of state and local taxes on the fiscal behavior of state and local governments. The primary finding is that deductibility affects the way that state-local governments finance their spending as well as the overall level of spending. More...

The authors look at the effect that a change from origin-based sourcing to destination-based sourcing under the multistate Streamlined Sales and Use Tax Agreement will have on Tennessee local government revenues. They estimate that under the agreement's provisions, aggregate local government...