- Consulting Editors
- Introduction: State and Local Government Finance in The United States
- The Constitutional Frameworks of State and Local Government Finance
- Federalism Trends, Tensions, and Outlook
- State and Local Government Finance: Why It Matters
- State and Local Governments and The National Economy
- The Evolving Financial Architecture of State And Local Governments
- Profiles of Local Government Finance
- Federal Preemption of Revenue Autonomy
- State Intergovernmental Grant Programs
- State and Local Fiscal Institutions in Recession and Recovery
- Real Property Tax
- State Personal Income Taxes
- State Corporate Income Taxes
- Entity Taxation of Business Enterprises
- Implications Of a Federal Value-Added Tax for State and Local Governments
- Retail Sales and use Taxation
- Local Revenue Diversification: User Charges, Sales Taxes, and Income Taxes
- State Tax Administration: Seven Problems in Search of a Solution
- Revenue Estimation
- Providing and Financing K–12 Education
- The Social Safety Net, Health Care, and the Great Recession
- Transportation Finance
- Housing Policy: The Evolving Subnational Role
- Capital Budgeting and Spending
- Financial Markets and State and Local Governments
- Infrastructure Privatization in The New Millennium
- Financial Emergencies: Default and Bankruptcy
- Government Financial-Reporting Standards: Reviewing the Past and Present, Anticipating the Future
- Pullback Management: State Budgeting Under Fiscal Stress
- Public Employee Pensions and Investments
- Accomplishing State Budget Policy and Process Reforms
- Fiscal Austerity and the Future of Federalism
- Achieving Fiscal Sustainability for State and Local Governments
- The Intergovernmental Grant System
- Community Associations at Middle Age: Considering the Options
Abstract and Keywords
This article reports that some states have responded by complementing the corporate income tax (CIT) with “business activity” or “entity” taxation—that is, a general business tax based on gross receipts (GRT) or on state value-added taxes (VAT). At present, ten states have some form of broad-based tax on gross receipts or a “hybrid” value-added base, with three of the ten relying on an entity approach such as an alternative minimum tax. The article begins with an introduction to the variants of state general business taxes, noting that the range of choices can be thought of as a continuum, with the options distinguished primarily by the deductions allowed at arriving at the taxable base. On one end of the continuum of equal-revenue yield taxation is the narrowly based CIT. On the other end is the pure GRT, or “turnover,” tax that disallows any deductions from gross receipts.
LeAnn Luna is an Associate Professor of Accounting in the Department of Accounting and Information Management in the Center for Business and Economic Research at the University of Tennessee.
Matthew N. Murray is a Professor of Economics at the University of Tennessee.
Zhou Yang is an Assistant Professor of Economics at Robert Morris University.
Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.
If you have purchased a print title that contains an access token, please see the token for information about how to register your code.