Do lower taxes attract jobs (for example, at the state level)?
	Economists do not have a clear answer to this question. The answer in any particular state at any particular time will depend on current levels of taxes and services in the state, the levels in neighboring states, and many other factors outside the control of state policy. The main conclusion from a comprehensive review of economic studies was that "researchers have had difficulty determining the degree to which employment, investment, or business location responds to differences in state and local taxes" (Bradbury, et al., 1997, p.3) Some researchers suggest that "for some industries, in some time periods, taxes seem to have mattered" (McGuire, 2001, p.3). Others conclude that "taxes do not appear to have a substantial effect on economic activity among states" (Wasylenko, 1997, p.47) Lower taxes are, of course, related to lower spending on public services. What effect does public spending on transportation, education, and other public services have on economic development? Again, economists conclude that there is no single answer to this question "In many studies, government spending, public capital or public services are estimated to exert a positive and statistically significant effect on economic development.... But the results vary greatly. Perhaps the most that can be concluded is that some public services clearly have a positive effect on some measures of economic development in some cases.." (Fisher, 1997, p. 54). References: Bradbury, Katherine L., Yolanda K Kodryzycki, and Robert Tannenwald, "The Effects of State and Local Public Policies on Economic Development: An Overview" New England Economic Review, March/April 1997, pp 1-12 Wasylenko, Michael, "Taxation and Economic Development: The State of the Economic Literature", New England Economic Review, March/April 1997, pp 37-52. Fisher, Ronald C., "The Effects of State and Local Public Services on Economic Development", New England Economic Review, March/April 1997, pp 53-67. ~