Illinois Government Research no. 54 1981: Tax Incidence: Property Taxes, Income Taxes, and Equity

Giertz, J. Fred

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https://hdl.handle.net/2142/9210 Copy

Description

Title

Illinois Government Research no. 54 1981: Tax Incidence: Property Taxes, Income Taxes, and Equity

Author(s)

Giertz, J. Fred

Issue Date

1981-05

Keyword(s)

• Illinois government
• State government
• Taxes

Abstract

Property tax has been the major source of revenue for local governments in the United States from the beginning, and it remains so today in both the nation and in Illinois Despite its longevity, it is still a controversial tax. It is controversial in regard to its relative importance among the array of various state and local taxes, its administration, its effect on business activity and industrial location, and especially, in regard to the distribution of the ultimate burden of the tax. Despite its use over the course of several decades — even centuries, there is still substantial controversy among economists and confusion among the public about who bears the burden of the property tax. The purpose of this report is to clarify the issue of the incidence of the property tax as compared with alternative revenue sources, especially the state income tax. An understanding of the distribution of the burden of the existing property tax and the effects of changing the level of taxation is vital in evaluating possible policy alternatives, such as the full or partial replacement of local property taxes which finance schools with an increase in the state income tax. Obviously such choices involve many other considerations in addition to the incidence of the various taxes, yet incidence questions are of crucial importance and the focus of much public debate.

Publisher

Institute of Government and Public Affairs. University of Illinois at Urbana-Champaign.

Series/Report Name or Number

Illinois Government Research, no. 54 (May 1981)

ISSN

0195-7783

Type of Resource

text

Language

en

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http://hdl.handle.net/2142/9210

Copyright and License Information

Copyright 1981 Board of Trustees of the University of Illinois

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