Inquiry into the Impact of State and Local Taxation on Industry Location

摘要

In the study the authors have taken another empirical look at the relationship between state and local taxes on industrial location. The results point quite strongly to the absence of any systematic relationship between taxes and firm location at either the state or local level. The empirical evidence suggests that the compeling efforts or state and local governments cancel each other out and give windfall profits to industry, including some of the United States largest. The authors conclude that tax incentives are neither efficient or equitable for economic development.