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Illinois reconfigured the legal basis and constraints for municipal telecommunications taxes in 2003. We use data on municipalities' initial (assigned) tax rate, fiscal condition, population, changes in tax rates of neighboring municipalities and neighbors' initial (assigned) tax rates to explain changes in telecommunications tax rates between 2003 and 2008. We find clear evidence of an important and statistically significant inertia effect-municipalities initially assigned a zero tax rate continued to stay tax free-and important and statistically significant neighboring effects-municipalities whose neighbors changed tax rates did the same, and municipalities whose neighbors were assigned relatively high initial rates increased their own rates faster. [ABSTRACT FROM AUTHOR]

Examines the degree to which `rainy day funds' eased the fiscal stress experienced by states in the United States during the 1990-91 recession. Use of a state fiscal policy of neutrality for evaluating the use of budget stabilization funds; State fiscal policy; Role of budget stabilization funds.

Discusses various aspects of the tax cuts in the United States in 1995. Definition and measurement of tax changes; Tax trends in the past; Outlook for future tax policy.