Tax Cuts and Employment Growth in New Jersey: Lessons From a Regional Analysis

W. Reed () and Cynthia Rogers

Urban/Regional from University Library of Munich, Germany

Abstract: The Whitman Administration’s 30 percent reduction in New Jersey’s personal income taxes from 1994-96 is prominently cited as a role model for state fiscal policy. We investigate whether the growth benefits attributed to the Whitman tax cuts are warranted. Panel data methods are applied to annual observations of county-level employment growth from New Jersey and the surrounding economic region. Our analysis does not support the hypothesis that tax cuts stimulated employment growth in New Jersey. While New Jersey did experience substantial employment growth subsequent to the tax cuts, most of this growth was shared by the nearby Economic Areas.

Keywords: Tax cuts; economics growth (search for similar items in EconPapers)
JEL-codes: H24 H71 R58 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2005-06-08
New Economics Papers: this item is included in nep-geo, nep-lab, nep-pbe and nep-ure
Note: Type of Document - pdf; pages: 29. This paper was published in Public Finance Review, Vol. 32, No. 3 (2004): 269-291.
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpur:0506010

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