October 13, 2000

“Further Evidence” on the Linkage Between Income Taxes and Economic Growth?


Examining economic growth rates before and after a single policy change without attempting to control for other causal factors is not an exercise which should be taken seriously. The impact of tax law changes on economic growth is, rightly, a topic of great interest. But Dye’s analyses add precisely nothing to our understanding of the effect of income taxes on state economic growth.

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