The fiscal problem in Missouri

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Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter X. Problems of tax burden

Collection:: Economics Books

280 THE FISCAL PROBLEM IN MISSOURI Tue BurpEN oF THE Missourt Income Tax It is generally accepted that an income tax imposed by a governmental unit as large as the United States is not usually shifted, that is, cannot be passed on by the taxpayer through changes in prices. This does not necessarily hold true of a state income tax. Industry in Missouri competes with in- dustry in other states, and this applies also to persons who are engaged in the production of the same or similar products. It must be recognized, however, that established industries and individual workers lack a high degree of mobility, and this lack of mobility is an important factor in the shifting of the income tax. The question of the shifting of the income tax, or any specific tax, furthermore, cannot be considered by itself. It is the total state and local tax burden that is significant, not the burden of any specific tax, and always various other factors are present. If an industry decides to remove from a state, 1t 1s usually because a careful analysis of all the factors indicates a balance in favor of moving. Even though the margin in favor of moving is equivalent to the difference in taxes in the two states, and the difference in taxes is due entirely to the fact that one state levies an income tax and the other does not, it does not necessarily follow that the difference in tax burden will be the decisive factor in de- termining the question of moving. “The only generalization possible 1s that all other factors being equal, the location of industry may turn on the question of tax burden.” The tax burden is no doubt a more influential factor in determining the location of a new enterprise than in causing an industry to move from one state to another. In reachinga decision as to location, the corporation income tax is sig- nificant in that it forms a component part of the total tax burden. If in two states all other factors, including all taxes other than the income tax, are equal, the location of a new enterprise may depend on the presence or the absence of a corporation income tax. t National Industrial Conference Board. State Income Taxes, 1930, Vol. II, p. 163.

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