It is often argued that high business taxes will keep businesses from locating in a state and high personal income taxes will drive away wealthy individuals who might create jobs or locate executive offices in a state. Read the first three chapters of Rethinking Growth by Robert Lynch, the article Tax Flight is a Myth by Robert Tannenwald (both on blackboard), and the relevant sections on business and income taxes in Fisher.
What are the arguments for and against business tax cuts as a strategy to spur state and local economic development? Do taxes matter much in location decisions?
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