State and federal tax equity: Estimates before and after the Tax Reform Act of 1986

The progressivity and equity of both state and federal individual income taxes, as well as the combined system of both taxes, are examined before and after the federal Tax Reform Act of 1986 using a variety of measures applied to federal Statistics of Income individual income tax data; state taxes are calculated using TAXSIM. Our findings are as follows: First, in both 1985 and 1987, state personal income taxes were generally less progressive and more horizontally equitable than the federal system. Second, in moving from 1985 to 1987, state personal income tax systems generally displayed decreased progressivity and horizontal inequity. The combination of the two systems displayed generally lower progressivity and horizontal equity scores when we compare 1987 to 1985. Last, the after-tax income distribution became more unequal when we compared 1987 to 1985.

Salience: Agenda choices by competing candidates

Which issues are discussed by candidates in an election campaign? Why are some issues never discussed? Model tractability is lost quickly when dealing with these questions, partly because of the multidimensional voting inherent in models of multiple issues. Our model features two candidates for office who can talk about any subset of issues, allowing uncertainty both on the part of voters and candidates, and taking candidates to be office motivated. Candidates move first and simultaneously, announcing any positions they choose on any issues. To us, salience is simply the discussion of an issue in a campaign. If both candidates and voters are expected utility maximizers, we find salience results, in that candidates typically want to talk about everything (or they are indifferent between talking and nonsalience). Leaving the expected utility framework, we present an example using “Knightian uncertainty” or “maxmin expected utility with multiple priors” of Gilboa–Schmeidler to illustrate how robust nonsalience and salience of issues might be generated. Copyright Springer Science + Business Media, Inc. 2005