- Supermajority vote requirements exist in 16 states and require a supermajority vote to raise taxes rather than a simple majority.
- Studies have found conflicting evidence on whether these rules are effective at reducing taxes in the short and long run, with some finding they reduce taxes in the short run but not necessarily the long run.
- States may circumvent these rules by raising taxes through fees and surcharges not subject to the supermajority requirement, through initiatives and referendums, or by undermining the rule through legal challenges.
Klaus Schmidt-Hebbel - Catholic University of Chile
Raimundo Soto - Catholic University of Chile
ERF Training on Advanced Panel Data Techniques Applied to Economic Modelling
29 -31 October, 2018
Cairo, Egypt
Raimundo Soto - Catholic University of Chile
Klaus Schmidt-Hebbel - Catholic University of Chile
ERF Training on Advanced Panel Data Techniques Applied to Economic Modelling
29 -31 October, 2018
Cairo, Egypt
Whether you manufacture pallets, you pivoted from your core product to produce PPE, or maybe you are a retailer who is looking for some great insight from industry experts or you have accounting or finance questions related to your construction business or any manner of business in between, we would be glad to have you join us.
The topics we will cover are not only relevant and timely, but they are also sure to reveal growth opportunities in your business. This special presentation features insight into the PPP Loan and Paycheck Protection Program Loan Forgiveness process, CARES Act implication, R&D opportunities, Human Resources compliance risks, and insight from leading professionals in the manufacturing and professional services space.
Specifically, we will discuss:
- Where we stand now and the future of manufacturing
- Risks in Manufacturing
- Cybersecurity Concerns and Issues
- State and Local Tax Risks
- HR Policies For Your Organization
This informative event will be hosted and moderated by Dustin Raber, director of manufacturing and distributions services at Rea & Associates.
Klaus Schmidt-Hebbel - Catholic University of Chile
Raimundo Soto - Catholic University of Chile
ERF Training on Advanced Panel Data Techniques Applied to Economic Modelling
29 -31 October, 2018
Cairo, Egypt
Raimundo Soto - Catholic University of Chile
Klaus Schmidt-Hebbel - Catholic University of Chile
ERF Training on Advanced Panel Data Techniques Applied to Economic Modelling
29 -31 October, 2018
Cairo, Egypt
Whether you manufacture pallets, you pivoted from your core product to produce PPE, or maybe you are a retailer who is looking for some great insight from industry experts or you have accounting or finance questions related to your construction business or any manner of business in between, we would be glad to have you join us.
The topics we will cover are not only relevant and timely, but they are also sure to reveal growth opportunities in your business. This special presentation features insight into the PPP Loan and Paycheck Protection Program Loan Forgiveness process, CARES Act implication, R&D opportunities, Human Resources compliance risks, and insight from leading professionals in the manufacturing and professional services space.
Specifically, we will discuss:
- Where we stand now and the future of manufacturing
- Risks in Manufacturing
- Cybersecurity Concerns and Issues
- State and Local Tax Risks
- HR Policies For Your Organization
This informative event will be hosted and moderated by Dustin Raber, director of manufacturing and distributions services at Rea & Associates.
Data Quality in the Banking Industry: Turning Regulatory Compliance into Busi...Precisely
During the last 15 years, regulatory requirements in financial services have grown substantially in order to reduce the risk of global, systemic economic failure. Quality data provided through effective data governance and data quality processes is central to achieving effective compliance reporting. Not only does data quality help ensure accurate reporting, but successful compliance significantly enhances other business decisions which rely on high quality data.
This webinar looks at the ramp up in reporting complexity, how successful compliance is linked to data governance and data quality, and how data quality helps empower financial institutions to make better decisions to increase revenue and decrease expense.
View this webinar on-demand for a discussion on:
• Tracing the background for regulatory reporting and key financial regulations
• Understanding how data quality helps institutions succeed with regulatory reporting compliance
• How regulatory reporting improves data for other business decisions
• How financial institutions leverage Trillium DQ to deliver quality data
Are Rushed Privatizations Substandard? Analyzing Privatization under Fiscal P...GRAPE
Normal flow of privatizations presumably can be handled by governments
What is the outcome when a large number of firms needs to be privatized fast?
Focusing minds v. overwhelming government’s capacity (Gupta et al., 2008)?
Important for policy (national governments, IMF programs, EU)
Greece, Portugal, transition and emerging market economies
Government revenue v. efficiency of firms?
What do we do?
Examine effects of “rushed” privatization on firm performance
Use firm-level data from Poland during 1995-2005
Annual panel data on almost 3,500 manufacturing, service, mining, and utility firms with 1,400 privatizations
Focus on total factor productivity (TFP), scale of operations and employment
Compare privatized companies to non-privatized (SOE) firms
Are Rushed Privatizations Substandard? Analyzing Privatization under Fiscal P...GRAPE
- Examine effects of “rushed” privatization on firm performance
- Use firm-level data from Poland during 1995-2005
- Annual panel data on almost 3,500 manufacturing, service, mining, and utility firms with 1,400 privatizations
- Focus on total factor productivity (TFP), scale of operations and employment
- Compare privatized companies to non-privatized (SOE) firms
API/Wood Mackenzie Study Showing Obama Energy/Environment Regulations Leading...Marcellus Drilling News
A study released in June 2015 by the American Petroleum Institute titled "A Comparison of US Oil and Natural Gas Policies: Pro-development Policies vs. Proposed Regulatory Constraints". The study compares governmental energy policies--the ones that promote growth in jobs and the economy, and the ones that don't.
Alliance to Save Energy director of policy, Lowell Ungar, spoke at a Capitol Hill briefing on energy code provisions in the House energy bill, The American Clean Energy and Security Act of 2009 (H.R. 2454), on June 22nd, 2009. The briefing, hosted by the Environmental and Energy Study Institute and titled ‘Building Energy Codes: An Important Component of Climate Policy,’ highlighted the importance of strong national building codes provisions and the achievability of the standards proposed in the bill.
This report discusses the current business and regulatory environment that is resulting in the increased use of innovative ratemaking techniques, including the consideration by some utilities and jurisdictions of a multiyear rate plan (MYRP) filing. It also provides an overview of the different MYRP approaches being utilized, including case studies in selected states and key takeaways from each approach, and summarizes future trends regarding the use of MYRP filings.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Data Quality in the Banking Industry: Turning Regulatory Compliance into Busi...Precisely
During the last 15 years, regulatory requirements in financial services have grown substantially in order to reduce the risk of global, systemic economic failure. Quality data provided through effective data governance and data quality processes is central to achieving effective compliance reporting. Not only does data quality help ensure accurate reporting, but successful compliance significantly enhances other business decisions which rely on high quality data.
This webinar looks at the ramp up in reporting complexity, how successful compliance is linked to data governance and data quality, and how data quality helps empower financial institutions to make better decisions to increase revenue and decrease expense.
View this webinar on-demand for a discussion on:
• Tracing the background for regulatory reporting and key financial regulations
• Understanding how data quality helps institutions succeed with regulatory reporting compliance
• How regulatory reporting improves data for other business decisions
• How financial institutions leverage Trillium DQ to deliver quality data
Are Rushed Privatizations Substandard? Analyzing Privatization under Fiscal P...GRAPE
Normal flow of privatizations presumably can be handled by governments
What is the outcome when a large number of firms needs to be privatized fast?
Focusing minds v. overwhelming government’s capacity (Gupta et al., 2008)?
Important for policy (national governments, IMF programs, EU)
Greece, Portugal, transition and emerging market economies
Government revenue v. efficiency of firms?
What do we do?
Examine effects of “rushed” privatization on firm performance
Use firm-level data from Poland during 1995-2005
Annual panel data on almost 3,500 manufacturing, service, mining, and utility firms with 1,400 privatizations
Focus on total factor productivity (TFP), scale of operations and employment
Compare privatized companies to non-privatized (SOE) firms
Are Rushed Privatizations Substandard? Analyzing Privatization under Fiscal P...GRAPE
- Examine effects of “rushed” privatization on firm performance
- Use firm-level data from Poland during 1995-2005
- Annual panel data on almost 3,500 manufacturing, service, mining, and utility firms with 1,400 privatizations
- Focus on total factor productivity (TFP), scale of operations and employment
- Compare privatized companies to non-privatized (SOE) firms
API/Wood Mackenzie Study Showing Obama Energy/Environment Regulations Leading...Marcellus Drilling News
A study released in June 2015 by the American Petroleum Institute titled "A Comparison of US Oil and Natural Gas Policies: Pro-development Policies vs. Proposed Regulatory Constraints". The study compares governmental energy policies--the ones that promote growth in jobs and the economy, and the ones that don't.
Alliance to Save Energy director of policy, Lowell Ungar, spoke at a Capitol Hill briefing on energy code provisions in the House energy bill, The American Clean Energy and Security Act of 2009 (H.R. 2454), on June 22nd, 2009. The briefing, hosted by the Environmental and Energy Study Institute and titled ‘Building Energy Codes: An Important Component of Climate Policy,’ highlighted the importance of strong national building codes provisions and the achievability of the standards proposed in the bill.
This report discusses the current business and regulatory environment that is resulting in the increased use of innovative ratemaking techniques, including the consideration by some utilities and jurisdictions of a multiyear rate plan (MYRP) filing. It also provides an overview of the different MYRP approaches being utilized, including case studies in selected states and key takeaways from each approach, and summarizes future trends regarding the use of MYRP filings.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Presentation by Jared Jageler, David Adler, Noelia Duchovny, and Evan Herrnstadt, analysts in CBO’s Microeconomic Studies and Health Analysis Divisions, at the Association of Environmental and Resource Economists Summer Conference.
Many ways to support street children.pptxSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Russian anarchist and anti-war movement in the third year of full-scale warAntti Rautiainen
Anarchist group ANA Regensburg hosted my online-presentation on 16th of May 2024, in which I discussed tactics of anti-war activism in Russia, and reasons why the anti-war movement has not been able to make an impact to change the course of events yet. Cases of anarchists repressed for anti-war activities are presented, as well as strategies of support for political prisoners, and modest successes in supporting their struggles.
Thumbnail picture is by MediaZona, you may read their report on anti-war arson attacks in Russia here: https://en.zona.media/article/2022/10/13/burn-map
Links:
Autonomous Action
http://Avtonom.org
Anarchist Black Cross Moscow
http://Avtonom.org/abc
Solidarity Zone
https://t.me/solidarity_zone
Memorial
https://memopzk.org/, https://t.me/pzk_memorial
OVD-Info
https://en.ovdinfo.org/antiwar-ovd-info-guide
RosUznik
https://rosuznik.org/
Uznik Online
http://uznikonline.tilda.ws/
Russian Reader
https://therussianreader.com/
ABC Irkutsk
https://abc38.noblogs.org/
Send mail to prisoners from abroad:
http://Prisonmail.online
YouTube: https://youtu.be/c5nSOdU48O8
Spotify: https://podcasters.spotify.com/pod/show/libertarianlifecoach/episodes/Russian-anarchist-and-anti-war-movement-in-the-third-year-of-full-scale-war-e2k8ai4
1. Short-Run and Long-Run Fiscal Effects of
Supermajority Rule to Raise Taxes
Soomi Lee
University of La Verne
November 12, 2017
National Tax Association Conference
Baltimore, MD
2. Supermajority Vote Requirements to Raise
Taxes in State Constitutions
• A procedural rule to limit legislative taxing power.
• Require a supermajority to raise taxes instead of a
simple majority.
• Sixteen states are currently under the requirement
(details vary): AZ, AR, CA, CO, DE, FL, KY, LA,
MI, MS, MO, NV, OK, OR, SD, WA.
1
3. Pros and Cons
• Proponents: the rules promote fiscal discipline by
increasing political cost of a winning coalition
(Brennan and Buchanan 1977, 1979)
• Opponents: the rules do not work. Fiscally
conservative states will abide by the rule; states
that tax and spend more will circumvent the rule
regardless of the presence of the rule (Poterba
1994).
2
4. Literature on Their Effectiveness
• Earlier studies: Yes, they reduce taxes.
– Knight (2000): Beasley and Case (2003)
• Recent studies: conflicting with earlier results
– Bradbury and Johnson (2006); Lee et. al
(2014); Heckelman and Dougherty (2010)
• Some studies show that it works in the short run.
– Lee (2014); McCubbins and McCubbins (2010)
3
5. How Do State Governments Cope with
Supermajority Rules to Raise Taxes?
• Possible state actions
1. Circumvent the rule
2. Raise taxes by legislative
supermajority/referenda
3. Undermine the rule
4
6. 1. Circumvention
(Kiewiet and Szakaly 1996)
• Both opponents and supporters claim this.
• Raise taxes and fees/surcharges that are not subject to
the supermajority rule
– CA Proposition 26, ”Stop Hidden Taxes” (2010)
– Most supermajority states impose the rule on fees too.
• State-enterprise exemptions
– California Chamber of Commerce, et al. v. California Air
Resources Board, 2013. (green house gas allowances)
– TABOR Foundation v. Colorado Bridge Enterprise, 2014.
(bridge safety surcharge)
5
7. 2. Do not circumvent
• Increase taxes through initiatives and
referendum
– Often temporary and renewed multiple times
– Nevada: a temporary increase in sales tax in
2009 was renewed three times.
– California: a state income tax increase
Proposition 30 (2012). Prop 55 (2016).
6
8. 3. Undermine the rule
• Nevada
– Guinn v. Legislature of Nev. (2002)
• Washington
– Legislative tampering (2001, renewed twice)
– League of Education Voters v. Washington State
(2013, the court ruled that the supermajority rule is
unconstitutional under the state constitution)
7
10. Empirical Challenges: Endogeneity
• Unobserved variables may affect states’ propensity
towards the rule adoption, which cause biased
estimates.
• Previous studies use fixed effect estimators
with/without instrumental variables such as an
availability of initiative process for a constitutional
amendment.
• Reasoning: if it is easier to change the state
constitution states will be more likely to adopt the
supermajority rules. And the existence of initiative
process will not be associated with taxes.
9
11. Unreliable IV Approach?
1. The initiative is likely to influence fiscal outcomes
through mechanisms other than the supermajority
requirements.
2. No tests for the validity of the instruments in
existing literature.
3. States have had their own fiscal preferences even
long before they allowed initiative processes in
their state constitutions (Berry 2014) . This might
violate the parallel trend assumption.
10
12. New Approach
• Introducing state-by-year fixed effects
yit = β1Dit + β2Sit + β3𝑆"#
$
+ λX + αi + δt + ψiT + εit
• D: dummy variable (1=existence of the rule)
• S: # years passed after the rule adoption
• αi : state fixed effect
• δt : time fixed effect
• ψiT : state-by-year fixed effect
• εit: : idiosyncratic error term
11
13. Data and Variables
• State-level yearly panel data with 46 states
from 1960 to 2008.
• Dependent variables:
– Tax burden (per $1,000 personal income)
– Growth of tax burden
– Fee burden (per $1,000 personal income)
– Tax to fee ratio
• Key independent variables:
– # years passed after the rule adoption
12
14. • Population (log)
• Per capita income ($2010 thousands)
• Dependency ratio
• Governor’s party affiliation
• % Democrats in the lower house;
• % Democrats in the upper house
• Citizen ideology; Government ideology
• Divided government (dummy)
• Existence of expenditure limits
• Presence of legislative term limit
Control Variables
13
15. Effects of Supermajority Rule on
Tax Burden ($ amount tax per $1,000 personal income)
(1) (2)
Supermajority rule
(dummy variable)
-4.887* -.598
(2.032) (1.444)
State-specific time trend No Yes
Control Variables No No
N 2254 2254
Adj.R-sq .412 .63
Notes: Fixed-effects models are used. Robust standard errors are
in parenthesis. State fixed effect and time fixed effect included in
all models. *p<.05.
14
16. Effects of Supermajority Rule on
Tax Burden ($ amount tax per $1,000 personal income)
(1) (2) (3) (4)
Supermajority rule
(dummy variable)
-1.314 2.468* .702 2.843*
(1.059) (1.120) (1.019) (1.290)
#Years
-.488 -.456* -.680* -.482*
(.299) (.210) (.298) (.233)
#Years2 .009 .021* .017* .022*
(.006) (.010) (.008) (.010)
State-specific time trends No Yes No Yes
Control Variables No No Yes Yes
N 2254 2254 2254 2254
Adj.R-sq .412 .63 .419 .63
Notes: Fixed-effects models are used. Robust standard errors are in
parenthesis. State fixed effect and time fixed effect included in all
models. *p<.05.
15
17. Effects of Supermajority Rule on
Tax Burden ($ amount tax per $1,000 personal income)
(1) (2) (3) (4)
Supermajority rule
(dummy variable)
-1.314 2.468* .702 2.843*
(1.059) (1.120) (1.019) (1.290)
#Years
-.488 -.456* -.680* -.482*
(.299) (.210) (.298) (.233)
#Years2 .009 .021* .017* .022*
(.006) (.010) (.008) (.010)
State-specific time trends No Yes No Yes
Control Variables No No Yes Yes
N 2254 2254 2254 2254
Adj.R-sq .412 .63 .419 .63
Notes: Fixed-effects models are used. Robust standard errors are in
parenthesis. State fixed effect and time fixed effect included in all
models. *p<.05.
16
18. Effects of Supermajority Rule on
Tax Burden ($ amount tax per $1,000 personal income)
(1) (2) (3) (4)
Supermajority rule
(dummy variable)
-1.314 2.468* .702 2.843*
(1.059) (1.120) (1.019) (1.290)
#Years
-.488 -.456* -.680* -.482*
(.299) (.210) (.298) (.233)
#Years2 .009 .021* .017* .022*
(.006) (.010) (.008) (.010)
State-specific time trends No Yes No Yes
Control Variables No No Yes Yes
N 2254 2254 2254 2254
Adj.R-sq .412 .63 .419 .63
Notes: Fixed-effects models are used. Robust standard errors are in
parenthesis. State fixed effect and time fixed effect included in all
models. *p<.05.
17
19. 18
-10
-5
0
5
10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
# Year since adoption
90% lower
Point estimate
90% upper
Time Effects after Adoption on Total Effective Tax Rates
20. Effects of Supermajority Rule on
Growth of Tax Burden
(1) (2) (3)
Supermajority rule
(dummy variable)
-.924 -.755 -.591
(.567) (.575) (.722)
Years
(# years passed after adoption)
-.129* -.158*
(.042) (.060)
Years2 .001
(.002)
State by Year Fixed Effects Yes Yes Yes
Control Variables Yes Yes Yes
N 2208 2208 2208
Adj. R-sq .184 .184 .184
Notes: Fixed-effects models are used. Robust standard errors are in
parenthesis. State fixed effect and time fixed effect included in all
models. *p<.05.
19
21. Effects of Supermajority Rule on
Fee Burden (per $1,000 personal income)
(1) (2) (3)
Supermajority rule
(dummy variable)
.538 .532 .145
(.436) (.456) (.677)
Years
(# years passed after adoption)
.005 .071
(.063) (.097)
Years2 -.003
(.003)
Control variables Yes Yes Yes
Year dummy variables Yes Yes Yes
N 2208 2208 2208
Adj. R-sq .788 .787 .788
Notes: Fixed-effects models are used. Robust standard errors are
in parenthesis. *p<.05.
20
22. Effects of Supermajority Rule on
Tax to Fee Ratio
(1) (2) (3)
Supermajority rule
(dummy variable)
-.745 -.765 -.135
(.528) (.507) (.563)
Years
(# years passed after adoption)
.015 -.093
(.054) (.067)
Years2 .004
(.002)
Control variables Yes Yes Yes
Year dummy variables Yes Yes Yes
N 2256 2256 2208
Adj. R-sq .618 .618 .623
Notes: Fixed-effects models are used. Robust standard errors are in
parenthesis. *p<.05.
21
23. Conclusion
1. The rules increase the level of tax burdens after
the rule adoption. There are statistically
significant but substantially small time-varying
effects.
2. The rules slow down the growth of tax burden.
3. The conjectured legislative circumventing
behavior is not supported.
4. The long-term practicality of the supermajority
vote requirements for tax increases remains
unclear.
22