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ALEC Critique Misses the Mark

May 16, 2014

The American Legislative Exchange Council (ALEC) has now responded to our recent paper on interstate migration, in which we found that interstate differences in tax levels have a negligible impact on whether Americans move from one state to another and where they...

Sun Trumps Taxes as a Reason for Americans to Move From State to State

May 9, 2014

Jobs, family, housing, and climate all top taxes as reasons why Americans move from state to state, as we explain in our new paper.  We’re taking a closer look today at how climate affects people’s interstate moves.

The IRS tracks Americans’ interstate moves.  Its data show that people are moving from the cold Snowbelt...

Migration Data Refute Theory That Taxes Drive People to Move

May 8, 2014

Differences in tax levels among states have little to no effect on whether and where people move, contrary to claims by some conservative economists and elected officials, as we explain in a new paper.

For decades, Americans have been moving away from the Northeast, the industrial Midwest, and the Great...

More Evidence That You Can’t Lure Entrepreneurs With Tax Cuts

February 14, 2014

Cutting state taxes to attract entrepreneurs is likely futile at best and self-defeating at worst, a new survey of founders of some of the country’s fastest-growing companies suggests.  The study, which is consistent with other research, should be required reading for state policymakers — especially those...

More Business Tax Cuts Not the Ticket to Growth for New York

January 9, 2014

New York Governor Andrew Cuomo’s proposed business tax cuts — part of a $2 billion tax-cut package he outlined this week — would have a negligible impact on economic growth and job creation and would make it harder to fund education, roads, and other critical services that make the state a desirable place to do...

Supreme Court Opens Door Wider for Collecting Internet Sales Taxes

December 3, 2013

By declining to hear a challenge to New York State’s “Amazon law,” the U.S. Supreme Court has now helped pave the way for states and localities to collect more of the roughly...

More Evidence That State Tax Breaks Won’t Save Jobs

September 17, 2013

Intel Corporation, the world’s largest maker of computer microprocessors, announced on Friday that it was eliminating 400 jobs at a New Mexico plant, just six months after pushing successfully for large corporate tax cuts there.  It’s just the latest example of why it’s not smart to...

State Legislators’ Task Force Gets It Right on Taxation of Online Hotel Bookings

August 19, 2013

For many years, online travel companies (OTCs) like Expedia and Priceline have avoided paying the appropriate amount of state and local sales and lodging taxes on hotel rooms they book.  The companies calculate tax only on the wholesale room rate they pay the hotels, not the higher retail room rate they charge consumers.  Now, a National Conference of State Legislatures’ (NCSL) committee...

Despite Claims, Studies Don’t Agree That State Tax Cuts Boost Growth

June 17, 2013

In recent testimony to the North Carolina legislature supporting tax cuts, the Tax Foundation asserted that “rarely does empirical economic literature speak so strongly in unison as it does about the effect of taxes on economic growth.”  But that assertion is simply false, at least with respect to the literature on the effect of state and local taxes on state economic growth...

New York High Court Upholds the State’s “Amazon Law”

March 29, 2013

Earlier this week, I applauded a recent “test” vote in the U.S. Senate that signaled overwhelming and bipartisan support for pending legislation that would require large Internet merchants to collect...