TY  - JOUR
AU  - Albouy,David Y.
TI  - The Unequal Geographic Burden of Federal Taxation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13995
PY  - 2008
Y2  - May 2008
UR  - http://www.nber.org/papers/w13995
L1  - http://www.nber.org/papers/w13995.pdf
N1  - Author contact info:
David Albouy
Department of Economics
University of Michigan
611 Tappan Street
351C Lorch Hall
Ann Arbor, MI 48109-1220
Tel: 734/763-9619
E-Mail: albouy@umich.edu
AB  - In the United States, workers in cities offering above-average wages – cities with high productivity, low quality-of-life, or inefficient housing sectors – pay 30 percent more in federal taxes than otherwise identical workers in cities offering below-average wages. According to simulation results, taxes lower long-run employment levels in high-wage areas by 17 percent and land and housing prices by 28 and 6 percent, causing locational inefficiencies costing 0.33 percent of income, or $40 billion in 2008. Employment is shifted from North to South and from urban to rural areas. Tax deductions index taxes partially to local cost-of-living, improving locational efficiency.
ER  -