Tax Cuts and Employment Growth in New Jersey: Lessons From a Regional Analysis
AbstractThe 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.
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Bibliographic InfoPaper provided by EconWPA in its series Urban/Regional with number 0506010.
Length: 29 pages
Date of creation: 08 Jun 2005
Date of revision:
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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Tax cuts; economics growth;
Find related papers by JEL classification:
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-06-14 (All new papers)
- NEP-GEO-2005-06-14 (Economic Geography)
- NEP-LAB-2005-06-14 (Labour Economics)
- NEP-PBE-2005-06-14 (Public Economics)
- NEP-URE-2005-06-14 (Urban & Real Estate Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Paul Ryan wants to cut income taxes. Bobby Jindal wants to kill them dead.
by Dylan Matthews in Ezra Klein's Wonkblog on 2013-03-20 16:30:26
- Christian Bjørnskov & Niklas Potrafke, 2013.
"The size and scope of government in the US states: does party ideology matter?,"
International Tax and Public Finance,
Springer, vol. 20(4), pages 687-714, August.
- Christian Bjørnskov & Niklas Potrafke, 2013. "The Size and Scope of Government in the US States: Does Party Ideology Matter?," CESifo Working Paper Series 4246, CESifo Group Munich.
- Christian Bjørnskov & Niklas Potrafke, 2013. "The size and scope of government in the US states:Does party ideology matter?," Ifo Working Paper Series Ifo Working Paper No. 162, Ifo Institute for Economic Research at the University of Munich.
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