State Taxation of Intangibles: the Problem of Evasion

Abstract

Seven states in the United States are identified as having significant intangibles taxes. The characteristics of these taxes are surveyed, and the degree of tax evasion is estimated. It is found that evasion is a major problem in all states. In fact, in all but one state the revenue generated does not even equal the revenue predicted, assuming full compliance, from just the portion of the tax levied on corporate stock listed on the New York Stock Exchange. Various policy alternatives are evaluated.

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