The Deductibility of State and Local Taxes: Impact Effects by State and Income Class

26 Pages Posted: 6 Jul 2004 Last revised: 25 Mar 2010

See all articles by Daniel R. Feenberg

Daniel R. Feenberg

National Bureau of Economic Research (NBER)

Harvey S. Rosen

Princeton University - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: October 1985

Abstract

This paper provides careful estimates of the impact of removing the deductibility of state and local taxes by state andby income class. We show how deductibility affects marginal and average tax rates for both state and federal tax systems. One striking result is that combined federal income tax and state tax burdens would generally fall under the President's tax reform proposal, even for high income people in high tax states.

Suggested Citation

Feenberg, Daniel R. and Rosen, Harvey S., The Deductibility of State and Local Taxes: Impact Effects by State and Income Class (October 1985). NBER Working Paper No. w1768, Available at SSRN: https://ssrn.com/abstract=338820

Daniel R. Feenberg (Contact Author)

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Harvey S. Rosen

Princeton University - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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CESifo (Center for Economic Studies and Ifo Institute)

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