State level tax effects on employment
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Most of the United States have individual and corporate level taxation and the influence on private employment is largely debated. This paper concentrates on exploring and quantifying the effect of state level taxes and total private, manufacturing, and retail employment using a fixed effects model with socioeconomic variables. Findings suggest that there is a statistically significant negative relationship between the state top marginal individual tax rate and employment in each observed industry. Moreover, property tax rates play a role in location decision making by manufacturing companies. The recovery from the 2007-2009 financial crisis has been marked by weak job growth and this paper evaluates the role of state taxation in creating new jobs.