Pattern of state coal taxation. [Review]
This paper reviews the recent history of state coal taxation and reports an empirically-based effort at defining the key determinants of state and local coal taxation. A pattern emerges but the analysis is complicated by the empirical and conceptual difficulties typical of such studies. Perhaps as important a result as the detection of a pattern is the recognition that many seemingly important variables do not appear to have consistently influenced tax levels. For policy makers and for industry, it appears that the present concern over a coal-states cartel is excessive. One can speculate that draconian tax adjustments on the basis of a crude-indicator-like reserve base will ultimately transfer less wealth than would skillful preemption of rent. It is also noteworthy that the sign of the tax effort variable is positive, indicating that coal tax rates are consistent with other tax efforts, not a substitute for them. Accepting impacts and general tax effort variables as the best explanations of interstate variations in tax effort is a somewhat different matter than determining what any given state's tax rate ought to be; such a question lies beyond the scope of this paper. This tax-determinant study can not define the right level of coal taxation, but it can suggest that no trend is yet evident toward entrepreneurial tax rates. 20 references, 4 figures.
- Research Organization:
- Columbia Univ., New York, NY
- OSTI ID:
- 6529302
- Journal Information:
- Mater. Soc.; (United States), Vol. 5:2; Conference: American Economic Association and Allied Social Sciences Association annual meeting, Denver, CO, USA, 5 Sep 1980
- Country of Publication:
- United States
- Language:
- English
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01 COAL, LIGNITE, AND PEAT
COAL
TAXES
ECONOMIC ANALYSIS
REVIEWS
STATE GOVERNMENT
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DOCUMENT TYPES
ECONOMICS
ENERGY SOURCES
FOSSIL FUELS
FUELS
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294001* - Energy Planning & Policy- Coal
017000 - Coal
Lignite
& Peat- Legislation & Regulations