Date of Award

3-2011

Document Type

Thesis

Department

Political Science

First Advisor

Patrick Donnay

Abstract

Policy makers today are faced with trying to create solutions for economic troubles that become increasingly more complex and foreboding. Tax cuts and tax hikes are proposed and considered as possible solutions to various economic problems. However, the question still remains regarding which policies are most effective. The purpose of this research is to asses these competing claims. It seeks to find evidence that will shed light on one of these views. I have done this by accumulating tax and economic data from the fifty U.S. States between the years 2001-2009. Previous research has concluded that taxes do affect the economy dependent upon where the revenue is used. Rather than look at state expenditures resulting from tax revenue, this research looks instead at specific taxes and economic indicators to determine how tax policies affect economic growth. The anticipated result of this research is that there will be a positive relationship between lower taxes and higher economic prosperity.

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