<<  <  >  >>

1980, 1990, and 1999. All tax data were from the

and Government," National Bureau of Economic

U.S. Bureau of the Census government finances

Research Working Paper 2855, February 1989; and

data, www.census.gov/govs/www/index.html.

Andrew Newell and James Symons, "Macroeconomic

Consequences of Taxation in the 80s," London

38. U.S. Congress, Joint Economic Committee, "State

School of Economics, Center for Economic

and Local Taxation and Economic Growth: Lessons

Performance, Discussion Paper 121, February 1993.

for Federal Tax Reform," December 1995, p. 1.

44. Deborah Swenson, "Transaction Type and the

39. Zsolt Becsi, "Do State and Local Taxes Affect

Effect of Taxes on the Distribution of Foreign

Relative State Economic Growth?" Federal

Direct Investment in the United States," in

Reserve Bank of Atlanta Economic Review,

International Taxation and Multinational Activity, pp.

March­April 1996.

89­112.

nternational

40. James Hines, Introduction to I

45. The example uses Virginia's actual general

Taxation and Multinational Activity, ed. James Hines

fund revenues for FY03. We have assumed the

(Chicago: University of Chicago Press, 2001), p. 1.

same value for FY03 general fund spending under

Option B, and then grown spending at 4 percent

41. Reint Gropp and Kristina Kostial, "The

after that.

Disappearing Tax Base: Is Foreign Direct

Investment Eroding Corporate Income Taxes?"

46. Michael J. New, "Limiting Government

International Monetary Fund Working Paper

through Direct Democracy: The Case of State Tax

173, October 2000, www.imf.org/external/

and Expenditure Limitations," Cato Institute

pubind.htm.

Policy Analysis no. 420, December 13, 2001.

42. Paul Cashin, "Government Spending, Taxes,

47. Ibid., p. 12.

and Economic Growth," International Monetary

Fund Staff Paper, June 1995.

48. U.S. Congress, Congressional Budget Office,

"Innovative Financing of Highways: An Analysis

43. Eric Engen and Jonathan Skinner, "Fiscal Policy

of Proposals," January 1998; and Reason Public

and Economic Growth," National Bureau of

Policy Institute, "Privatization 2002: 16th Annual

Economic Research Working Paper 4223, December

Report on Privatization," April 2002, www.rppi.

1992, p. 32. See also Alan Reynolds, "Some

org/apr2002.html.

International Comparisons of Supply-Side Policy,"

Cato Journal 15, no. 2 (Fall 1985): 543­70; Robert J.

49. Michael Shear, "Toll Plan Proposed to Widen

Beltway," Washington Post, July 13, 2002, p. B1.

Barro, "A Cross-Country Study of Growth, Saving

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