Date of this Version
Business in Nebraska vol. 50 no. 598
Fiscal pressures have forced many Great Plains states to restructure their tax systems in recent years. The costs of general government, health care, education, and other factors have placed ever-growing pressures on state and local governments in the region. Once dominant tax sources are being replaced by what policy makers hope is an optimal mix of property, sales, income, and other taxes.
Policy makers are attempting to reformulate tax structures for several reasons:
• To fund government services more efficiently and in less distortionary ways;
• To fund services fairly and equitably;
• To consider externalities and spillover effects that cross state and/or regional lines;
• To consider the internal changes brought by trade patterns and international competitiveness.
Sources of Fiscal Pressure