Brorsen, B. Wade; Lansford, Notie H. - Agricultural and Applied Economics Association - AAEA - 2013
Small communities sometimes increase their local sales tax rate in order to maintain or expand public services. The … question addressed here is what is the net effect of changing sales tax rates on revenues from sales taxes? Using both … semiparametric and nonparametric regression, we find retail sales to be mostly unaffected by sales tax rates as long as the rate is …