Discussion Papers Based on the Study of the Michigan Tax-Limitation Amendments

摘要

These discussion papers pertain to the 1978 Michigan election, in which voters were faced with three constitutional tax limitation proposals on the ballot. In an attempt to understand why voters might favor the tax limitation movement, 1 paper reports the results of a survey of 2,001 Michigan residents on how these people voted in 1978 and on their perceptions of economic conditions and the impact of the proposed amendments. Results indicate that voters do not seem to feel that government is too big or that public employees should be punished. The strongest support for tax limitation comes from those who think such limitations will improve voter control of government or government efficiency. Another paper, using the same survey data, analyzes the extent to which the Michigan circuit - breaker has been successful in reducing the income regressivity of the property tax and in changing relative property tax burdens. A third paper estimates the demand for public spending, tests the Tiebout hypothesis that location decisions permit public goods to be provided with a high degree of economic efficiency, and examines whether the fiscal taste grouping of individuals is related to the actual level of public spending provided in the community. Another paper estimates voter and nonvoter preferences for public spending and spending limits and a final paper applies standard tools of welfare economics to determine the circumstances under which tax limitation can be expected to improve or worsen economic welfare given that the level of public spending and / or the wages received by public employees are higher than those they would obtain in a first - best optimum. The papers contain references, graphs, data tables, and equations.