Economics at your fingertips  

Do States Choose Their Mix of Taxes to Minimize Employment Losses?

J. William Harden and William Hoyt ()

National Tax Journal, 2003, vol. 56, issue 1, 7-26

Abstract: We consider the mix of taxes chosen by a state government to minimize reductions in employment growth. The optimal mix of taxes requires that the decrease in employment growth for an additional dollar of revenue is equal for all taxes. We test this prediction using state-level data from 1980-1994. We find the corporate income tax has a significant negative impact on employment while the sales and individual income taxes do not. Our results also suggest that states are not choosing the mix of taxes to minimize losses in employment growth with corporate income taxes set relatively too high.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)
Access to most recent volumes (current and past two years) is restricted to subscribers and members of the National Tax Association.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

National Tax Journal is currently edited by Stacy Dickert-Conlin and William M. Gentry

More articles in National Tax Journal from National Tax Association, National Tax Journal Contact information at EDIRC.
Bibliographic data for series maintained by Sally Sztrecska ().

Page updated 2020-04-20
Handle: RePEc:ntj:journl:v:56:y:2003:i:1:p:7-26