Eliminating Louisiana's Income Tax Will Harm the State's Budget Outlook, Competitiveness
End Notes
[1]http://doa.louisiana.gov/OPB/pub/FY09/SupportingDocument/StatewideSummary.pdf
[2] “Final Report - Revenue Neutral Tax Reform for Oklahoma: Issues and Options” , a Study for Governor Frank Keating, Senate President Pro Tempore Stratton Taylor and House Speaker Larry Adair, by Robert Dauffenbach, Alexander Holmes, Kent Olson, David Penn and Larkin Werner, June 2001.
[3] CBPP calculations from U.S. Census Bureau, Government Finances data.
[4] Institute on Taxation and Economic Policy calculations
[5] Donald J. Boyd and Lucy Dadayan, “State Revenue Flash Report: Sales Tax Declines in Most States,” May 2008, with CBPP adjustment for general inflation (CPI-U).
[6] Louisiana Legislative Fiscal Office, Revenue Estimating Conference Report, February 10, 2008.
[7]A recent interpretive survey of the literature by Northwestern University Economist Therese McGuire finds that the results of research on interregional differences in taxes is mixed; depending on the decade studied and the measures used, one can find significant effects of taxes on economic growth or not. Timothy Bartik, Senior Economist at the W.E. Upjohn Institute for Employment Research, finds that “Equally competent research projects may get widely divergent estimates of the economic development effects of fiscal variable.” Literature that shows expenditures matter includes a well-regarded early study by Jay Helms, and a later review by Ronald Fisher. Economist Robert Lynch reviews the literature and finds that increases in taxes, when used to expand the quantity and quality of public services, may promote economic development and economic growth. Therese J. McGuire, “Do Taxes Matter? Yes, no, maybe so,” State Tax Notes, Vol. 28 No. 10, June 9, 2003; Timothy Bartik, New England Economic Review, March/April 1997; Jay L. Helms, “The Effect of State and Local Taxes on Economic Growth: A Time Series-Cross Section Approach, The Review of Economics and Statistics, Vol. 67, No. 4, November 1985; Ronald C. Fisher, “The Effects of State and Local Public Services on Economic Development, New England Economic Review, March/April 1997; Robert Lynch, Rethinking Growth Strategies: How State and Local Taxes and Services Affect Economic Development, Economic Policy Institute, 2004.