State Tax Effort - Effective Tax Rate
Why is this important?
This is a measure of the extent to which the state has additional capacity to generate tax revenue should it choose to do so. It indicates whether or not tax increases are a valid policy option.
What are the policy implications?
Sources of revenues state versus students for funding higher education are affected by this measure.
Other factors to consider:
See all of the measures linked to the Understanding Higher Education Finance diagram.
Data sources and related links:
State Higher Education Executive Officers (SHEEO), http://sheeo.org
