Local Government Tax and Land Use Policies in the United States: Understanding the Links

By Helen F. Ladd; Lincoln Institute of Land Policy | Go to book overview

fortunes of large US cities. If public services demands are inelastic with respect to income, tax rates must change. The consequence has been significant variations in tax rates over the past 30 years, sufficient to reveal an underlying sensitivity of economic activities — most likely those of businesses and upper income households — to tax changes. Second, Ladd suggests that firms' investment and location decisions may have become more sensitive to taxation in recent years. This certainly seems reasonable for large cities as the service and communication 'revolutions' have reduced the agglomeration advantages of large-city locations. Finally, Ladd notes the failure of previous econometric studies of tax effects to control adequately for important cross-state, cross-region or cross-location variations in zoning laws, and other 'unobservables' may conceal the true effects of taxes on economic activities within a given locality. The within-city time-series analyses in our study are one attempt to minimize these problems. It is encouraging that our estimated effects of tax rates on tax base reported here are well within the elasticity bounds reported in the 1991 survey by Bartik and summarized in Ladd's review. Perhaps there is a consensus emerging on this important issue after all.


Notes
1.
Ladd's survey does not include three studies, by Griesonet al. on New York City ( 1977) and Philadelphia ( 1980) and by Gruenstein ( 1980) on Philadelphia, each of which finds a significant effect of business taxes on business activity.
2.
A longer research paper detailing our estimates is available upon request. In that paper we report preliminary estimates of the effects of tax rates on tax base for New York City as well. Though preliminary, the New York City results appear consistent with the conclusion from Philadelphia, Houston and Minneapolis that tax rates do have adverse effects on the levels of economic activity within the city.

References

Bartik, Timothy ( 1991), Who Benefits from State and Local Economic Development Policies?, Kalamazoo, Michigan: Upjohn Institute for Employment Research.

Grieson, Ronald E. ( 1980), "Theoretical analysis and empirical measurements of the effects of the Philadelphia income tax", Journal of Urban Economics, 8, 123-37.

Grieson, Ronald E., William Hamovitch, Alfred M. Levenson and Richard D. Morgenstern ( 1977), "The effect of business taxation on the location of industry", Journal of Urban Economics, 4, 170-85.

Gruenstein, J. ( 1980), "Jobs in the city: can Philadelphia afford to raise taxes?", Business Review, Federal Reserve Bank of Philadelphia, May/June, 3-11.

Inman, Robert P. ( 1992), "Can Philadelphia escape its fiscal crisis with a tax increase?", Business Review, Federal Reserve Bank of Philadelphia, September/October, 5-20.

Inman, Robert P. ( 1995), "How to have a fiscal crisis: lessons from Philadelphia", American Economic Review, 85, 378-82.

-107-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Local Government Tax and Land Use Policies in the United States: Understanding the Links
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Figures vii
  • Tables viii
  • List of Contributors x
  • Acknowledgements xiii
  • Lincoln Institute of Land Policy xiv
  • 1. Introduction 1
  • Notes 21
  • References 21
  • Part I - Interactions Between Tax and Land Policies 23
  • 2. Theoretical Controversies: Land and Property Taxation 25
  • Notes 38
  • References 39
  • Notes 48
  • References 48
  • References 53
  • 3. Land Use Regulation as a Fiscal Tool 55
  • Notes 72
  • References 72
  • Notes 80
  • References 81
  • 4. Effects of Taxes on Economic Activity 82
  • Notes 99
  • References 99
  • Notes 107
  • Notes 115
  • 5. Tax Policies to Promote Economic Development 116
  • Notes 128
  • References 129
  • Part II - Tax Policy as a Land Use Tool 131
  • 6. the Pittsburgh Experience with Land- Value Taxation 133
  • Notes 141
  • References 142
  • 7. Property Tax Treatment of Farmland: Does Tax Relief Delay Land Development? 144
  • Notes 157
  • References 159
  • 8. Incentives, Firm Location Decisions and Regional Economic Performance 168
  • Notes 180
  • References 180
  • 9. Tax Increment Financing as a Tool of Redevelopment 182
  • Notes 196
  • References 197
  • Part III - Fiscal and Distributional Impacts 199
  • 10. Fiscal Impacts of Business Development in the Chicago Suburbs 201
  • Notes 212
  • References 214
  • Appendix 215
  • 11. Who Pays Development Fees? 218
  • Notes 231
  • References 233
  • 12. Regional Tax Base Sharing: the Twin Cities Experience 234
  • Notes 251
  • References 253
  • Index 255
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 264

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.