Monday, February 26, 2007

If you want fewer jobs, tax income 

Filed As:  Budget and Tax, Employment

If you want fewer jobs, tax income.

That's one lesson that might be drawn from a research notes from the Arkansas Policy Foundation . In a short publication released this month, the Foundation compares the states on their record of job growth in 2006.

Three of the top ten states (Florida, Mississippi, Louisiana) were in the south, another (South Dakota) was in the plains, and the other six (including the top six) were in the west. The top two, with growth rates of 5.3 and 4.8 percent were Wyoming and Nevada, respectively. Neither state has a corporate or individual income tax system.

Coincidence? You could argue that Wyoming was an anomaly, driven by the spike in energy prices. But Nevada has seen no such benefit.

The states in the bottom ten of job creation are in the high-cost east and Midwest. "Leading" the pack is Michigan, the only job to actually have a net loss of jobs in 2006. The Wolverine state is saddled with companies that have been described as benefits companies disguised as auto manufacturers. "No Tax Wyoming Led U.S. in 2006 Job Creation" is not yet available on the foundation's web site.

• posted by John LaPlante
• 3:23 pm
• 0 comment