Comparing Corporate Tax Rates and Economic Growth in the Midwestern United States

dc.contributor.authorStrohman, Isaac O.
dc.date.accessioned2021-12-17T19:03:15Z
dc.date.available2021-12-17T19:03:15Z
dc.date.issued2021-05
dc.description24 pages. Capstone paper from 2021 spring MPA program. Instructed by Allen Zagoren.en_US
dc.description.abstractPublic policy makers often propose lowering taxes as a means for stimulating economic growth. Given the complexities of the tax system and economic forces, it is important to test this theory empirically to confirm what types of fiscal policy changes are most effective for healthy economic development. In this research paper, I compare Midwestern states’ top statutory corporate tax rates with their respective annual gross domestic product (GDP) growth each year from 2000-2017. Using a fixed effects regression model to analyze panel data for twelve states, I find that the top statutory corporate tax rate does not have a significant effect on GDP growth during the time examined. This finding is inconsistent with the theory that lower taxes lead to increased economic growth. However, further empirical testing is necessary to determine the effects of changing tax rates in both the short- and long-term.en_US
dc.identifier.urihttps://escholarshare.drake.edu/handle/2092/2249
dc.language.isoen_USen_US
dc.subjectCorporate tax ratesen_US
dc.subjectGross domestic producten_US
dc.subjectState tax ratesen_US
dc.subjectEconomic growthen_US
dc.subjectTax policyen_US
dc.titleComparing Corporate Tax Rates and Economic Growth in the Midwestern United Statesen_US
dc.typeOtheren_US
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