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Tax Interdependence in the U.S. States
The paper addresses the important question of the extent to which personal and corporate income taxes are used to compensate for sales tax fluctuations within the U.S. states. The results show that one percent increase in the sales tax rate is associated with a half and a third percent decrease in the personal and corporate income tax rates respectively.
Link
http://www.uahurtado.cl/docum/economia/papers/agostini_taxmix_wp_gu.pdf