State and local politicians tend to apply new and increased taxes to taxpayers who are nonresident visitors to the jurisdiction, such as a tax on auto rentals and hotel stays, because the taxpayer cannot vote to reelect (or oust) the lawmaker.

Question

Quizplus · Accepted Answer

This practice is known as "tax exporting" and allows local politicians to raise revenue in a way that minimizes the backlash from their voting constituents, as the tax burden falls primarily on nonresidents who do not have voting rights in the local jurisdiction.

State and Local Politicians Tend to Apply New and Increased