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Abstract: This paper empirically tests the effects of taxation on economic performance using prefectural level city and county data from China. Results based on cross-sectional data from over 200 prefectural cities in 2007 indicate that overall tax burden and tax structure affect economic performance. Specifically, tax burden has a negative correlation with economic activities. Empirical results from the analysis of disaggregated local data for over 2,000 counties in China also support the hypothesis that distortionary taxation lowers the economic activities. These findings provide empirical evidence from China on a negative relationship of the total tax burden with economic activities. [Copyright &y& Elsevier]

The article analyzes the relationship between economic growth and personal income tax in the 100 largest metropolitan areas in the U.S. since 1980. The author argues that high spending and tax rates in cities such as Detroit, Michigan, Milwaukee, Wisconsin, and Syracuse, New York, impede economic development. He asserts that high-growth areas such as Dallas, Texas, Tampa, Florida, and Austin, Texas, are models that should be emulated. According to the author, the data reveal that economic prosperity and the growth of urban areas will escalate as tax burdens are low as compared to nearby metropolitan areas. The author emphasizes the importance of low tax rates and effective spending by local governments during times of economic difficulty.

OBJECTIVES: To investigate the appropriateness of tax incidence (the percentage of the retail price occupied by taxes) benchmarking in low-income and-middle-income countries (LMICs) with rapidly growing economies and to explore the viability of an alternative tax policy rule based on the affordability of cigarettes. DESIGN: The paper outlines criticisms of tax incidence benchmarking, particularly in the context of LMICs. It then considers an affordability-based benchmark using relative income price (RIP) as a measure of affordability. The RIP measures the percentage of annual per capita GDP required to purchase 100 packs of cigarettes. Using South Africa as a case study of an LMIC, future consumption is simulated using both tax incidence benchmarks and affordability benchmarks. RESULTS: I show that a tax incidence benchmark is not an optimal policy tool in South Africa and that an affordability benchmark could be a more effective means of reducing tobacco consumption in the future. CONCLUSIONS: Although a tax incidence benchmark was successful in increasing prices and reducing tobacco consumption in South Africa in the past, this approach has drawbacks, particularly in the context of a rapidly growing LMIC economy. An affordability benchmark represents an appropriate alternative that would be more effective in reducing future cigarette consumption. [ABSTRACT FROM AUTHOR]

Estimates the incidence of local taxes and expenditures and the distribution of income in metropolitan Washington DC under the fragmented system of government and under a hypothetical metropolitan-wide regime. Distribution of metropolitan resources in a unified form of metropolitan governance; Similarity of tax and expenditure incidence and income distribution in the two systems.