Abstract
Nearly all state tax commissions—independent groups that study and make recommendations for improving a state’s tax system—are tasked with improving economic development within the state. Their report introductions include phrases such as “growth-friendly,” “unleash innovation,” and “optimum competitor.” And many commissions cite economic development to justify their concluding recommendations. But most reports ultimately contain little exploration or explanation on how taxes and economic development are (or are not) linked. This is a missed opportunity because most commissions thoroughly investigate their state’s tax structure, often with the assistance of respected tax and budget experts.
The Urban Institute
by Richard C. Auxier
October 16, 2016