Recall from Chapter 9 the median voter theory. Consider a state that imposed a proportional income tax
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Recall from Chapter 9 the median voter theory. Consider a state that imposed a proportional income tax on everyone, but assume that the median voter did not itemize his or her deductions, so this individual's federal income tax payments did not depend on state taxes. How, according to the theory, would expenditures in such a state differ from those in a state with similar average incomes but in which the median voter did itemize his or her deductions, so that increased state and local taxes reduced the individual's federal tax payments?
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Economics Of The Public Sector
ISBN: 9780393925227
4th Edition
Authors: Joseph E. Stiglitz, Jay K. Rosengard
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