The influence of taxes on employment and population growth: Evidence from the Washington, D.C. Metropolitan area

Stephen T. Mark*, Therese J. McGuire, Leslie E. Papke

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

46 Scopus citations

Abstract

We examine whether personal and business taxes are an important determinant of economic development in a metropolitan area. We estimate determinants of the location of private employment and population across the D.C. metropolitan area over the period 1969-94. After controlling for jurisdiction and time effects, we find that higher rates of two business taxes - sales and personal property - reduce annual employment growth by a significant amount. Higher levels of nonwelfare public service expenditures are estimated to increase employment growth. We do not find local property taxes to be a significant factor.

Original languageEnglish (US)
Pages (from-to)105-122
Number of pages18
JournalNational Tax Journal
Volume53
Issue number1
DOIs
StatePublished - Mar 2000

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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