A critique on the effectiveness of tax-expenditure limitations

The principal purpose of this study is to investigate the probable impact of tax and spending limitations on tax burdens and state expenditures. This is accomplished via a systematic evaluation of the alternative proposals associated with tax limitation legislation. In particular, this paper analyzes the linking of state public sector growth to inflation, limiting tax burdens to a percent of personal income, the inclusion of escape clauses in the enabling legislation and the evolution of these tax limitations into legalized minimums.