The Future of State Taxation.

• Author: Guajardo, Sal
• Position: Review

Brunori, David, editor

Washington, D.C.: The Urban Institute Press. (229 pp)

Reviewed by Sal Guajardo, Manager-Research and Policy, GFOA Research Center, Chicago, Illinois.

As we enter the new millennium, state revenue structures are threatened by dramatic ongoing demographic shifts and rapid technological advances taking place, such as electronic commerce. In The Future of State Taxation, the major tax sources of state revenue are described, and their future is discussed by leading tax experts. According to the editor, David Brunori, the book's intent is to "foster public debate on the future of state and local government finance and taxation."

The book consists of 12 chapters. Chapter 1 serves as the introduction to the work. John Mikesell (chapter 2) begins the debate of state and local government taxation by discussing the need for a general consumption tax. In chapter 3, William Fox discusses the future of the state sales tax and argues for a tax on services. Chapters 4, 5, and 6 address the future of the state and local corporate tax, business tax incentives, and business taxation, respectively. Joan Youngman (chapter 7) and Steven Sheffrin (chapter 8) present their view of state and local property taxation. Financing public education is discussed by William Waugh in chapter 9. Andrew Reschovsky (chapter 10) addresses whether state tax systems are progressive or regressive. In chapter 11, David Brunori discusses personal income taxation. Finally, in chapter 12, Walter Hellerstein presents his views on the impact of electronic commerce on various revenue sources (e.g., sales and use taxes).

The major strength of the book is that the authors have a very good grasp of the issues and problems surrounding the major revenue sources. Moreover, the book, while discussing very timely issues, also is successful in providing a historical basis for future discussions on the serious challenges facing state and local governments.

Although the book offers a very good description...