Taxes and Growth: Business Incentives and Economic Development

摘要

The policy question and addressed in this study is 'Should a state, given its present tax levels and structure, its present expenditure policy, and its present regulatory policy, adopt tax incentives intended to increase business investment within its borders'. The studfy combines a conceptual essay, a review of the academic literature, and new empirical work. The study consists of five chapters. Chapter One presents an overview of the level and composition of present state and local taxes, along with a review of existing state business tax incentives. Chapter Two considers the use of tax incentives as a public investment in a benefit/cost framework. Chapter Three is a literature review of existing empirical studies on the effects of state business tax incentives. Chapter Four presents new empirical research developed as part of this study. Finally Chapter Five summarizes the findings and considers the implications of the study for state policymakers. (Copyright (c) 1981 by the Council of State Planning Agencies.)