This paper seeks to produce evidence on the labor incidence of the taxation of machinery and equipment purchases by manufacturers under the state general sales tax. For the identification strategy, we exploit tax policy discontinuities among adjacent counties along state borders. The main...

In 2012, Kansas undertook a large-scale tax reform that excluded certain forms of business income from individual taxation. In theory, these changes enhance the incentives to undertake more real economic activity such as new business formation or increases in employment or investment. But, the...

Policymakers frequently employ tax holidays to stimulate spending and transfer state revenues to favored groups. Perhaps the most common form of this policy in the United States are “Back to School” tax holidays where states waive the retail sales tax on selected school supplies in the fall....