State Individual Income Taxes--Net Burdens and Progression in 1960

    Publications and papers by Emanuel Melichar (www. emelichar. com)

State Individual Income Taxes
   Impact of alternative provisions on burdens and yields, with
   special reference to Connecticut and Connecticut agriculture
Ph.D. Thesis,  The University of Connecticut,  1961

Published as hardcover book by William S. Hein & Co., Inc.,
Buffalo, New York,
1994, pp. i-xxi, 423 pp.

State Individual Income Taxes
   Impact of Alternative Provisions
   on Burdens, Progression, and Yields
Monograph 2,  Storrs Agricultural Experiment Station,  The University of Connecticut,
July 1963,   Preface, p. iii,   Table of Contents, pp. v-vii,   Text, 275 pp.
Note: Figures 3 and 4, from the back cover, have been inserted between text pages 46 and 47 (PDF file pages 54 and 55).

During the 1950s, rapid urbanization in Connecticut resulted in escalation of property taxes on those farming operations using much farmland, and it was thought that instituting an income tax would result in more equitable taxation of farmers and the new residents.

Because existing state income taxes were likely to serve as models for a Connecticut tax, this study calculated, for various taxpayer incomes, the net burden and progressivity of each of the existing taxes. Connecticut legislators might thus be better able to choose tax provisions that yield a desired outcome. The net burden of each state income tax at various incomes was calculated as the amount by which the combined federal and state tax was increased by adoption of the state tax, after deduction of the state tax on federal returns and, if allowed, the deduction of the federal tax on state returns. The resulting patterns of net burden and progression as a taxpayer's income rose were graphed and compared.

To compare progressivity among income levels and among the existing state taxes, measures of tax progression found in economic literature were examined, and one was selected as most useable and appropriate for empirical quantification of the degree of progression over spans of income.

For students of taxation, an interesting finding was that, because of the interplay between the federal and state income brackets, the dollar amount of the net burden of each state tax decreased over short mid-range spans of income, whether or not the state allowed deduction of federal tax. This anomaly contributed to the tax of each state becoming either less progressive, or regressive, at higher incomes.

Estimated Connecticut tax collections and burdens were calculated using the provisions of each of the existing state taxes. And, a special tabulation of Connecticut farm incomes obtained from the Internal Revenue Service was used to estimate the taxes and burdens of Connecticut farmers.

 
Net Burden and Progression of State Individual Income Taxes
Presented to the Virginia Social Science Association,
April 21, 1962,  15 pp.

State Income Taxes...Their Impact on District Taxpayers
Monthly Review, Federal Reserve Bank of Richmond,
May 1960,  pp. 2-5