<![CDATA[The Indiana Law Journal & The Indiana Law Journal Supplement - Articles - ]]> http://www.indianalawjournal.org en-us N/A admin@indianalawjournal.org Tue, 06 Jan 2009 00:23:34 EST 20 <![CDATA[A Republic of the Mind: Cognitive Biases, Fiscal Federalism, and Section 164 of the Tax Code]]> http://www.indianalawjournal.org/articles/26/1/A-Republic-of-the-Mind-Cognitive-Biases-Fiscal-Federalism-and-Section-164-of-the-Tax-Code/Page1.html Under Section 164 of the Internal Revenue Code, taxpayers are allowed to itemize and deduct the cost of their state and local taxes – income, property, and sales taxes.The accepted theory of this deduction is to effect a shift in federalism -giving more power to the states to regulate and tax.

In the article, the author argues that this deduction actually can serve an opposite purpose; rather than shifting regulation and power to the states and promoting federalism, it can actually undermine state governments. The author argues in this article that the deduction plays a large role in the way that state and local governments are structured. The author does not advocate the abolishment of Section 164, but rather a more complete understanding of how it actually functions and changes politics at the state and local levels.

]]> no@spam.com (Brian Galle) Fri, 05 Oct 2007 15:05:59 EDT http://www.indianalawjournal.org/articles/26/1/A-Republic-of-the-Mind-Cognitive-Biases-Fiscal-Federalism-and-Section-164-of-the-Tax-Code/Page1.html