When States Discriminate: The Non-uniform Tax Treatment of Municipal Bond Interest

There is a long history of states using tax systems to encourage residents to invest in bonds issued by jurisdictions within their state. This preferential or discriminatory tax treatment was ruled unconstitutional in 2006 by the Kentucky Court of Appeals. The Kentucky court decision, which sets the stage for this essay, was overturned by the U.S. Supreme Court in 2008. This essay addresses the possible implications of this and similar discriminatory tax policies. Such discriminatory policies are the foundation of the municipal bond market, and altering the practice would have significant implications for revenue collections and borrowing costs in most states and localities. While the Supreme Court's position has been rendered, the case has caused policy makers and administrators to scrutinize discriminatory tax policies and their impact on budgets and borrowing costs.     

Political Culture and the Study of Chinese Politics

It is both a truth and a truism that Chinese politics cannot be understood without reference to Chinese culture (a truth and truism that would apply to any other society as well). But within the academic discipline of political science political culture has lost status over the past generation as not conducive to the development of empirical political theory. The usual candidate for replacement is rational choice theory. But properly understood, political culture is compatible with rational choice, inasmuch as there is no single standard of rationality, but, rather, it will vary from society to society and era to era. Considerations of the cultural background are necessary to provide content to rational choice theory, since without consideration of culture context rational choice threatens to reduce to a set of colorless banalities.

The reappraisal of the cultural revolution

Especially in the wake of the June 4 incident, some scholars have called for a second look at the “Rebel” activism of the Cultural Revolution. They identify the Rebel movement as a quest for self‐liberation from oppression and criticize the Deng regime's confounding Rebel opposition to totalitarian domination with the Gang of Four's totalitarian terror. This essay questions the reappraisal, arguing that while Rebel ideology may have been a step toward democracy, it was not itself fully democratic, and that it has lost much of its democratic relevance.