Income taxes and urban spatial structure

Article Abstract:

The impact of income tax in a monocentric city with residents who allocate their time equally among work, community and leisure is examined. Results of the study indicate that an increase in income tax lowers the implicit value of time and transportation costs. An income tax rate change also affects welfare, by inducing substitution in favor of leisure and travel. In regard to the problem of benefit measurement for transportation in this tax (distorted spatial economy), benefit measures must be deflated to allow further transportation improvements to reduce land use intensity.

Economic research, Housing research, Income tax, Metropolitan areas, Property acquisition

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Spatial variation of the marginal utility of income and unequal treatment of equals

Article Abstract:

A commentary upon recent research that shows that equal disbursements of income, assets and services by planners will still result in unequal treatment of individuals attempts to present a rationale for this situation. If the income elasticity for space is zero, the problem does not occur. However, in a more realistic situation, housing prices drop as distance from the city center increases, allowing more money for other uses and promoting inequality. Prices are an important factor in equality.

Social aspects, Analysis, Cities and towns, Economic surveys, Microeconomics

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Interjurisdictional capital mobility: fiscal externality and a corrective subsidy

Article Abstract:

Research examines the effects of property taxation on local public spending and capital mobility. Property taxation policy in one area may cause a flow of capital from that area to other jurisdictions. This causes an inefficiently low amount of public spending in the original area. A subsidy that internalizes the external flow of funds can be used to compensate for the inefficiency. The subsidy rates could be as high as 40% in order to be efficient.

Research, Interpretation and construction, Tax law, Expenditures, Public, Public expenditures, Urban economics, Property taxes, Property tax

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