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Competitive, political, and economic factors influencing state tax policy changes.

ABSTRACT: We investigate state tax competition for capital and piece of works focusing on the business income apportionment formula. We direct the eye for associations between states' apportionment formula changes and competing states' changes using fact history analysis. We test for a positive association between our tax competition proxies and apportionment formula change while controlling for economic, political, and regional diffusion influences upon tax policy. Our results support the hypothesized positive association. We finish that state governments struggle for capital and jobs and rejoin to ...





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