Date of Graduation
12-2023
Document Type
Dissertation
Degree Name
Doctor of Philosophy in Business Administration (PhD)
Degree Level
Graduate
Department
Accounting
Advisor/Mentor
T.J. Atwood
Committee Member
Henry, Erin
Second Committee Member
Goldman, Nathan
Third Committee Member
Shipman, Jonathan
Keywords
rolling conformity, state corporate income tax, state tax revenue
Abstract
Recent federal tax legislation has dramatically altered the landscape of state taxation. A product of this change is the increased interest in rolling conformity among corporate income taxing states. Under rolling conformity, states adopt federal tax provisions on a continual basis without the need for legislative approval. Despite its benefits, academic literature theorizes that rolling conformity is associated with several attributes that may negatively impact state budgets. I assess the merits of these concerns by examining the effect of rolling conformity on state corporate tax revenue. My results suggest that corporate tax revenue in rolling conformity states is more sensitive to federal tax policy, experiences more volatility, and is subject to larger forecast errors. My findings provide new insight into state tax conformity policy decisions and their ex-post consequences and should be of interest to state tax policy makers.
Citation
Johnson, T. (2023). How Does Rolling Conformity Affect State Tax Revenue?. Graduate Theses and Dissertations Retrieved from https://scholarworks.uark.edu/etd/5143