According to the Wall Street Journal, "it has become evident in recent years that the serious business of governing the United States is largely being done in the States." To meet the demand for state and local public services, governments must raise revenue. This course is designed to introduce students to the legal and policy issues relating to state and local taxation. The course begins with an overview of state and local fiscal structure, then considers the major federal constitutional and statutory limitations on state and local taxes. The course will then focus on the dominant sources of revenue for state and local governments, including the personal income tax, the corporate income tax, and the retail sales tax. Several cutting-edge legal and policy controversies will be examined in depth, including topics such as the rise of e-commerce and its effect on the state and local tax base and the use of economic development incentives by state and local governments to attract and retain business. There are no prerequisites for this course.