Publication Date

April 2012

Advisor(s)

Masami Imai

Major

Economics (ECON)

Language

English (United States)

Abstract

Theoretical and econometric models suggest that a high federal corporate tax can inhibit business creation. There is, however, a dearth of research on the impact of state corporate tax rates, although state tax policy can have important effects on business formation via similar mechanisms as for federal taxes. Individuals can decide not to start business if after-taxes profits are too low, or they can relocate to a location with lower tax rates. I exploit the variation of state tax policy across the U.S. to examine the relationship between taxes and business creation.

Share

COinS
 

© Copyright is owned by author of this document