IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/17825.html
   My bibliography  Save this paper

Are High Taxes Restricting Indiana’s Growth?

Author

Listed:
  • Tatom, John

Abstract

The “Hoosier Comeback” program, sponsored by the Indiana Economic Development Corporation, is part of a strategy to boost economic growth, in this case through increasing the quantity and quality of available human resources by providing subsidies to encourage the return of former residents. Whether emigration rates could be boosted more by cuts in income tax rates or by cuts in the corporate, sales or property taxes is an open issue, but the taxes that have risen most in recent years have been sales and property taxes. The Tax Foundation’s State Business Climate Index suggests that more bang would come from cutting the individual income tax. Economic theory would also suggest that cutting taxes on corporate capital income, or property (structures) would have the largest efficiency gains because the underlying resources are the most mobile.

Suggested Citation

  • Tatom, John, 2006. "Are High Taxes Restricting Indiana’s Growth?," MPRA Paper 17825, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17825
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/17825/1/MPRA_paper_17825.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dennis Epple & Thomas Romer & Holger Sieg, 2001. "Interjurisdictional Sorting and Majority Rule: An Empirical Analysis," Econometrica, Econometric Society, vol. 69(6), pages 1437-1465, November.
    2. Conway, Karen Smith & Houtenville, Andrew J., 2001. "Elderly Migration and State Fiscal Policy: Evidence from the 1990 Census Migration Flows," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 103-24, March.
    3. Conway, Karen Smith & Houtenville, Andrew J., 2001. "Elderly Migration and State Fiscal Policy: Evidence From the 1990 Census Migration Flows," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(1), pages 103-124, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard J. Cebula & J.R. Clark, 2011. "Migration, Economic Freedom, and Personal Freedom: An Empirical Analysis," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 27(Fall 2011), pages 43-62.
    2. Wilson, John Douglas & Wildasin, David E., 2004. "Capital tax competition: bane or boon," Journal of Public Economics, Elsevier, vol. 88(6), pages 1065-1091, June.
    3. Daniel G. Lindberg, 2022. "The price elasticity of senior housing demand: is it a necessity or a luxury?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 57(4), pages 204-216, October.
    4. Margit Schratzenstaller, 2023. "Behavioral Responses to Inheritance Taxation. A Review of the Empirical Literature," WIFO Working Papers 668, WIFO.
    5. Onder, Ali Sina & Schlunk, Herwig, 2015. "State Taxes, Tax Exemptions, and Elderly Migration," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    6. Brian Cushing & Jacques Poot, 2004. "Crossing boundaries and borders: Regional science advances in migration modelling," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 317-338, Springer.
    7. Imran Arif & Adam Hoffer & Dean Stansel & Donald Lacombe, 2020. "Economic freedom and migration: A metro area‐level analysis," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 170-190, July.
    8. Cebula, Richard & Nair-Reichert, Usha & Coombs, Christopher, 2013. "Gross In-Migration and Public Policy in the U.S. during the Great Recession: An Exploratory Empirical Analysis, 2008-2009," MPRA Paper 55449, University Library of Munich, Germany.
    9. Matthew J. Bloomfield & Ulf Brüggemann & Hans B. Christensen & Christian Leuz, 2017. "The Effect of Regulatory Harmonization on Cross‐Border Labor Migration: Evidence from the Accounting Profession," Journal of Accounting Research, Wiley Blackwell, vol. 55(1), pages 35-78, March.
    10. Cebula, Richard & Nair-Reichert, Usha & Coombs, Christopher, 2013. "Total State In-Migration and Public Policy in the United States: A Comparative Analysis of the Great recession and the Pre- and Post-Great Recession Years," MPRA Paper 56484, University Library of Munich, Germany, revised 02 Feb 2014.
    11. Woodcock, Simon D., 2008. "Wage differentials in the presence of unobserved worker, firm, and match heterogeneity," Labour Economics, Elsevier, vol. 15(4), pages 771-793, August.
    12. Richard Cebula & Christopher Duquette & Franklin Mixon, 2013. "Factors Influencing the State-Level Settlement Pattern of the Undocumented Immigrant Population in the United States," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(3), pages 203-213, September.
    13. Shan, Hui, 2010. "Property taxes and elderly mobility," Journal of Urban Economics, Elsevier, vol. 67(2), pages 194-205, March.
    14. Wildasin, David E., 2011. "Fiscal competition for imperfectly-mobile labor and capital: A comparative dynamic analysis," Journal of Public Economics, Elsevier, vol. 95(11), pages 1312-1321.
    15. Kallandranis Christos & Karidis Socrates, 2014. "Assessing the Effect of the Consumer-Voter Sentiment on Tiebout-Like Migration: The EU 27 Case," Global Economy Journal, De Gruyter, vol. 14(1), pages 31-55, June.
    16. Coomes, Paul A. & Hoyt, William H., 2008. "Income taxes and the destination of movers to multistate MSAs," Journal of Urban Economics, Elsevier, vol. 63(3), pages 920-937, May.
    17. Foley, Maggie & Angjellari-Dajci, Fiorentina, 2015. "Net Migration Determinants," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    18. Cameron A. Shelton, 2022. "Age Demographics and the Tax Mix in US States," Public Finance Review, , vol. 50(1), pages 120-130, January.
    19. Thomas Aronsson & Sören Blomquist & Luca Micheletto, 2010. "Where Should the Elderly Live and Who Should Pay for Their Care?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(2), pages 289-314, June.
    20. Tosun, Mehmet S. & Williamson, Claudia R. & Yakovlev, Pavel, 2009. "Population Aging, Elderly Migration and Education Spending: Intergenerational Conflict Revisited," IZA Discussion Papers 4161, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    tax rates and migration; tax policy and growth;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:17825. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.