The Fiscal Times says state tax cuts are not creating jobs
“In fact, there’s not a lot of academic consensus about the real impact of tax rates on job creation. While the prima facie case that lower taxes boosts job creation seems strong, there are secondary effects from cutting taxes that may reduce a state’s attractiveness to businesses.
“Kansas, for example, has cut funding for education and infrastructure – both potential negative factors for businesses looking for a high-skilled workforce and reliable public services.
” ‘Organizations advocating lower and less progressive taxes can find some studies by reputable economists that find that above-average state and local taxes have a measurable and consistently adverse impact on state economic performance,’ writes CBPP’s Michael Mazerov. ‘However, many equally reputable studies reach the opposite conclusion, and the results of many more are mixed, ambivalent, or show that any adverse impacts are small. There is simply no consensus whatsoever that cutting taxes is a good strategy to boost state economic growth and create jobs.’ ”
