There is a growing concern among policy makers and analysts regarding the mismatch between demand and supply of the revenue for improving and maintaining highway infrastructure. One possible solution is to link actual vehicle miles traveled (VMT) to the fee structure. The main objective of this paper is to model VMT dynamics and establish a methodology for designing an optimal VMT tax rate. The...

State governments have traditionally raised revenue from business by taxing corporate income. But in recent years the growing difficulty of administering state corporate income taxes has prompted a search for alternative ways of taxing companies. This search for new business taxes has ironically sparked a resurgence in one of the world’s oldest broad-based tax structures: the gross receipts tax...

Governments have an enormous economic and political stake in the health of their populations. Population health is not only fundamental to economic growth but also affects short-term and long-term government expenditure on health care, disability, and other social programs and influences direct and indirect tax receipts. Fiscal transfers between citizen and state are mostly ignored in conventio...

Abstract This article presents a measure of the efficiency consequences changes to tax policies that inform wide range law debates. Building upon recent extensions “elasticity taxable income” concept, we clarify relationship among revenue effects, administrative costs, and compliance costs. The resulting measure—the behavioral elasticity (BETR)—captures change in total resources from marginal r...