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

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Author Info

  • W. Robert Reed

    (University of Oklahoma)

  • Cynthia L. Rogers

    (University of Oklahoma)

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.

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File URL: http://128.118.178.162/eps/urb/papers/0506/0506010.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Urban/Regional with number 0506010.

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Length: 29 pages
Date of creation: 08 Jun 2005
Date of revision:
Handle: RePEc:wpa:wuwpur:0506010

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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Web page: http://128.118.178.162

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Keywords: Tax cuts; economics growth;

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References

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  1. Gerald Carlino & Robert Defina, 1998. "The Differential Regional Effects Of Monetary Policy," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 572-587, November.
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  12. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. 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
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Cited by:
  1. Bjørnskov, Christian & Potrafke, Niklas, 2013. "The size and scope of government in the US states: Does party ideology matter?," Munich Reprints in Economics 20275, University of Munich, Department of Economics.

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