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Are state and local revenue systems becoming obsolete? The economy's changing structure is threatening the revenue productivity of state and local government tax systems.
Editor's note: This article was adapted with permission from the September 2002 issue of National Tax Journal, a quarterly publication of the National Tax Association. The author published an earlier version of the article in the New England Economic Review (Issue 4, 2001), a quarterly publication of the Federal Reserve Bank of Boston.
In recent months, we public finance types have become used to nearly universal reports of sharply declining state revenues. Although cyclical factors are mostly responsible, many tax analysts believe that long-term economic and technological developments also are partially to blame and will continue to constrain state and local ...
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