Paul L. Caron
Dean





Friday, September 17, 2010

CBPP: Cutting State Corporate Income Taxes Is Unlikely to Create Many Jobs

The Center on Budget and Policy Priorities has published Cutting State Corporate Income Taxes Is Unlikely to Create Many Jobs, by Michael Mazerov:

Corporate income taxes are important sources of revenue that states use to fund public services, including services essential to long-term economic growth like education, infrastructure, health care, and public safety. Nonetheless, a number of 2010 gubernatorial candidates have made corporate tax cuts key planks of their campaign platforms. This continues a trend of the past couple of years, during which policymakers in several states have proposed cutting corporate income tax rates — or even eliminating the tax completely — as a strategy for stimulating economic growth and creating jobs. These proposals, however, offer false hope. Corporate income tax cuts are unlikely to have a positive impact on a state’s rate of economic growth or the pace at which it generates private-sector jobs.


Table 1:
State Corporate Income Tax as a Share of Total State/Local Business Taxes (%)
New York 18.4
New Hampshire 18.1
California 15.9
Massachusetts 14.4
New Jersey 12.1
West Virginia 12.0
Alaska 11.7
Delaware 10.5
Illinois 10.4
Utah 9.8
Indiana 9.0
Arkansas 8.9
Maryland 8.7
Montana 8.7
Tennessee 8.6
Minnesota 7.8
Alabama 7.6
Pennsylvania 7.6
Idaho 7.5
Kentucky 7.5
North Carolina 7.5
Mississippi 7.4
Wisconsin 6.7
Kansas 6.6
New Mexico 6.6
Vermont 6.3
North Dakota 5.9
Oregon 5.9
Arizona 5.8
Connecticut 5.8
Louisiana 5.8
Oklahoma 5.6
Nebraska 5.4
Virginia 5.4
Florida 5.3
Maine 5.2
Georgia 5.0
Rhode Island 4.6
Iowa 4.3
Michigan 4.2
South Carolina 4.0
Colorado 3.8
Missouri 3.3
South Dakota 3.1
Hawaii 3.0
Nevada No CIT
Ohio No CIT
Texas No CIT
Washington No CIT
Wyoming No CIT
United States 8.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 








  




   










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Comments

As opposed to Obama's policies which are creating millions of new jobs, aren't they?

Posted by: mike livingston | Sep 18, 2010 6:26:27 AM

The president's new CEA chair disagrees. If you cut corporate rates, you get more corporate activity.

Posted by: guy in the veal calf office | Sep 17, 2010 11:09:54 AM