Munich Personal RePEc Archive

Was Proposition 4 Really a Tax Reduction Mirage? A Correction and Reinterpretation of Earlier Findings

Cebula, Richard (1985): Was Proposition 4 Really a Tax Reduction Mirage? A Correction and Reinterpretation of Earlier Findings. Published in: The Americam Journal of Economics and Sociology , Vol. 46, No. 1 (30 January 1987): pp. 107-108.

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Abstract

An earlier study published in this Journal by Cebula and Chevlin finds that the passage of a tax-expenditure limitation (TEL) statute in all of the 50 states would not have resulted in a reduction in the per capita levels of both spending and taxes. The present study takes issue with this finding. In particular, using the same data as Cebula and Chevlin, it is demonstrated here that, by applying the formula for statistically significant means, the existence of Proposition 4 or its equivalent in each of the 50 states would have, in theory, resulted in a statistically significant reduction in both per capita nominal state plus local government spending and taxes.

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