About the Author
Pavel A. Yakovlev Associate Professor, Department of Economics Duquesne University email@example.com
This study investigates the relationship between various measures of economic performance and taxation in a longitudinal panel of American states. The study detects a pattern in how the effective average tax rate, the personal income tax, and personal income tax progressivity relate to different measures of state economic performance, which include real gross state product per capita and its growth rate, growth in the number of firms, and net immigration rate. The analysis of multiple indicators reveals that higher state taxes are generally associated with lower economic performance, even after controlling for tax endogeneity.
codes: H2, H3, O4 Keywords: state taxes, effective average tax rate, tax progressivity, gross state product, GSP, state economic performance, state economic growth, immigration rate, income per capita, personal income tax