Growth and Taxes

REVIEW SUMMARY
What. FGCU study shows inverse relation of growth and taxes.
Issue. Do high taxes cause low growth, or vice versa?
Impact. Evidence to help declining cities turn around.

Low taxation by state and local governments may not cause growth in an area's population, employment or income — and high taxation may not explain why many regions produce low numbers — but one thing's now more certain than ever: taxes and economic growth tend to move in opposite directions.

That's the key finding of a recently published study done by Florida Gulf Coast University economics Professor Dean Stansel.