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How Major Local Taxes Affect Private Employment


  • Yonghong Wu

    (University of Illinois at Chicago, Chicago, IL, USA)


This empirical research focuses on three major local taxes—property tax, sales tax, and telecommunications tax—to examine their impacts on local economic development in the six-county Chicago metropolitan area. The statistical results indicate that these three major local taxes have significant negative effects on business employment. The study implies that it may be counterproductive for local governments to raise tax levels in order to address some immediate revenue shortfalls in the aftermath of the recent economic recession.

Suggested Citation

  • Yonghong Wu, 2012. "How Major Local Taxes Affect Private Employment," Economic Development Quarterly, , vol. 26(4), pages 351-360, November.
  • Handle: RePEc:sae:ecdequ:v:26:y:2012:i:4:p:351-360

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