Changing demographics and state fiscal outlook: the case of sales taxes.
"Broad-scale demographic changes have implications for state and local finance in terms of the composition of the base of revenue sources and their yields. This article examines the effect of such changes on the potential future yield of consumption-based taxes. The effect of household characteristics and composition on the consumption of selected groups of goods subject to ad valorem retail sales taxes is estimated, generating demographic elasticities of consumption. These elasticities are applied to projected demographic changes in eight states through the year 2000. The results show rather wide variation in expected consumption shifts and potential tax bases across the states, with income growth having the greatest effect...." The geographical focus is on the United States.
D000569:Americas; D003710:Demography; D019049:Developed Countries; D004467:Economics; D005191:Family Characteristics; D005376:Financial Management; D007182:Income; D009656:North America; D011153:Population; D011157:Population Dynamics; D012959:Socioeconomic Factors; D013660:Taxes; D014481:United States
Americas; Consumption--changes; Demographic Factors; Demographic Impact; Developed Countries; Economic Factors; Family And Household; Family Characteristics; Financial Activities; Household Consumption; Income; Macroeconomic Factors; Microeconomic Factors; North America; Northern America; Population; Population Dynamics; Socioeconomic Factors; Taxation; United States