TAX EQUITY IN THE AMERICAN STATES - A MULTIVARIATE-ANALYSIS

Using a newly created measure of state and local tax burden by income class, this research assesses variations in state-local tax progressiv ity. Contrary to previous studies on welfare policies, which have foun d that higher-income states provide more generous welfare benefits, va riations in state economic resources are shown to have little effect o n the degree of tax progressivity. Typical measures of political parti cipation also add little to the understanding of variations in tax bur den by income class. A proxy for middle-class tax resistance, however, was a major contributor to tax regressivity. The extent to which a st ate relies on income taxes and the progressivity of the personal incom e tax also are major determinants of tax burden differences among the American states.