Diagnosis Murder: The Death of State Death Taxes |
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| Authors: | Karen Smith Conway Jonathan C Rork |
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| Institution: | Conway:;Professor, Department of Economics, University of New Hampshire, Durham, NH 03824. Phone 1–603–862–3386, Fax 1–603–862–3383, E-mail Rork:;Assistant Professor, Department of Economics, Vassar College, Poughkeepsie, NY 12604. Phone 1–845–437–7398, Fax 1–845–437–7576, E-mail |
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| Abstract: | Since 1976, more than 30 states have eliminated their "death" taxes and many others have reduced them. This unexplored case of interstate tax competition presents a unique opportunity to develop a new, more satisfying definition of competitor based on historical elderly migration patterns. Using data from 1967 onward, we outline the recent history of state death tax competitio n and present a spatial econometric analysis. Interstate tax competition is evident and grows stronger when using migration-based definitions of competitors. The article concludes with still more evidence of interstate tax competition—the recent movement by states to effectively revive their death taxes. |
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