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Report By The Federal Reserve.pdf

2018003pap.pdf
Preview of report by the Federal Reserve
🔗 Source: federalreserve.gov
📊 Size: 2.04 MB
👤 Author: Ryan Decker; E. Mark Curtis
⬇️ Downloads: 124

Summary

Entrepreneurship plays a vital role in the US economy, contributing to job creation, business cycles, innovation, and productivity growth. This study examines the effect of state corporate, personal, and sales tax rates on new firm activity using county-level data on startups. The results show that new firm employment is negatively affected by corporate tax rates, with a 1 percentage point increase in the corporate tax rate leading to a 3.7 percent decline in employment among startup firms. Personal tax rates have no detectable effect, and state sales tax rates have negative but typically statistically insignificant effects. The results are robust to changes in the tax base and other state-level policies, and there is no evidence of cross-border spillovers.

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Description

Entrepreneurship plays a vital role in the US economy, contributing to job creation, business cycles, innovation, and productivity growth.

Technical Information

  • File Format: PDF
  • File Size: 2.04 MB
  • Pages: 59
  • Language: EN
  • Author: Ryan Decker; E. Mark Curtis
  • Total Downloads: 124
  • Last Updated: 2 weeks ago

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