Analysis of state general sales tax policy: A complementary approach to the effects of causes and the causes of effects

Previous research and theory on state general sales tax policy provide the major factors and components of the sales tax base that affect revenue reliance and tax burden. However, previous research on general sales tax policy has concentrated on individual factors and components of the sales tax base without considering the interdependent and interrelated causes of revenue reliance and tax burden. In addition, regression-based analyses are limited in analyzing the causal conjunctures that affect revenue reliance and tax burden. Thus, this research focused on a complementary approach to the effects of causes and the causes of effects, thereby empirically examining the combined causes of revenue reliance and tax burden through a (fs) QCA analysis of U.S. state data spanning from 2007 to 2010. This study reveals that the combined causes of revenue reliance and tax burden vary as ideal types compared with the effects of real types observed in the panel data analysis. This study contributes to the current literature by examining interrelated and interdependent causal relationships with regard to revenue reliance and tax burden in a complementary manner. State governments must consider the combined effects of causal conjunctures that affect revenue reliance and tax burden.