This report discusses the 1986 Tax Reform Act's potential effects on the level of State and local spending, State tax structures, interstate tax competition, and State and local use of tax-exempt bonds.,The Level of State and Local Spending. After-Federal-Tax Cost of a State or Local Tax Dollar ; Linkage between Federal and State Income Tax Bases -- State Tax Structures. Linkage of Income Tax Bases ; After-Federal-Tax Cost of State and Local Tax Dollars -- Interstate Tax Competition -- State and Local Use of Tax-Exempt Bonds. General Eligibility Criteria for Tax-Exempt Status ; Exceptions to the General Eligibility Criteria ; Volume Restrictions ; Implications for Tax-Exempt Bond Volume -- Conclusions.,Dennis Zimmerman, Specialist in Public Finance, Economics Division,CRS 87-233 E,"March 20, 1987.",SuDoc# 14. 18/3

This report compares the potential economic effects of several tax reform and deficit reduction proposals on the State-local sector, through their treatment of deductibility of State-local taxes from Federal taxable income and the exemption of interest on State-local bonds. The proposals considered are the Treasury, Kemp-Kasten, Bradley-Gephardt, DeConcini, and Quayle tax reform plans, and the floor and ceiling deductibility proposals for deficit reduction. Among the more important conclusions are that these proposals would differ in their potential effects on the State-local sector's own tax revenues and the distribution of the sector's revenue losses across States. Also, the effect on the State-local bond market from the Treasury, Bradley-Gephardt, and Kemp-Kasten proposals would differ from the effect of the DeConcini and Quayle proposals.,Dennis Zimmerman, Specialist in Public Finance, Economics Division,CRS 85-503 E,"January 18, 1985.",SuDoc# 14. 18/3

This report explains the economic rationales for Federal subsidy of public spending by the State-local sector and evaluates the changes in deductibility of State-local taxes proposed by the Treasury, Bradley-Gephardt, and Kemp-Kasten tax reform plans for consistency with these rationales.,Abstract -- Introduction -- Federal Subsidy of State-Local Provision?. What Justifies State-Local Provision? ; Why Should the Federal Government Subsidize State-Local Provision? ; Identifying the State-Local Goods to be Subsidized -- Is State-Local Tax Deductibility Consistent with the Economic Rationales for Federal Subsidy?. History of State-Local Tax Deductibility ; Eliminating Deductibility of All Taxes ; Eliminating Deductibility of Selected Taxes -- Conclusions.,Dennis Zimmerman, Specialist in Public Finance, Economics Division.,CRS 85-515 E,"January 28, 1985.",SuDoc# 14. 18/3

This report discusses three characteristics of the current tax treatment of State-local bonds which have contributed to their use for private purposes: lack of State-local financial responsibility for debt service; State-local initiative in defining public purpose; and flexibility in who can use bond proceeds. Which of these characteristics would be changed by each of the major reform proposals are identified, and their ability to separate public from private bonds is evaluated. An alternative proposal is discussed.