With few exceptions, state and local general sales and use taxes are levied primarily on tangible goods. Secular trends in production and consumption of goods and services, as well as legislated exemptions and exclusions, have eroded sales tax bases. A number of reforms designed to reduce base...

Previous studies suggest that income taxes do not affect the convergence speed in neoclassical and new growth models. Those studies use very simple tax structures. This paper shows that a relation between taxes and convergence speed emerges if tax benefits are included in standard macroeconomic...

The elasticity of taxable income determines revenue and welfare responses to taxes. Measurement of this elasticity is an ongoing focus of tax policy research. Empirical studies report short-run elasticities. However, general equilibrium relationships can cause short-run and long-run elasticities...