State Tax Policy

States can manage the unprecedented fiscal challenges they face only if they have sound revenue systems. Many have systems more appropriate for economies of the past, not that of the 21st century. In this fourth edition of his classic work, Brunori examines state tax policy by postulating the basic principles for evaluating taxes (yield, economic neutrality, equity, ease of administration and compliance, and accountability), discussing the questionable (but popular) effort to use tax incentives to stimulate economic development, and exploring how politics complicates adoption of sound tax policy. He then devotes a chapter each to the special challenges confronting the major state taxes (sales and use, personal income, and corporate income taxes), plus chapters that overview other state taxes (mostly excises and property) and other state revenue. He manages to make technical and tedious problems of tax structure less arcane for non-specialists and those interested in creating productive and sound revenue systems. His concluding chapter is essentially a plea for states to pay more attention to the evidence as they restructure their taxes, and to keep their revenue systems in tune with changing economies. Summing Up: Highly recommended. Upper-division undergraduates through professionals. * CHOICE *