Author

Nick Lorenson

Date of Award

5-2013

Document Type

Thesis

Department

Political Science

First Advisor

Patrick Donnay

Abstract

With the recent economic downturn, jobs have been at the forefront of people’s concerns. Policy makers in every state have promised their constituents new jobs. Of particular importance are high paying jobs. Manufacturing jobs tend to be a well-paying and highly sought after form of employment. However, in recent decades, the percentage of manufacturing jobs has been declining in the United States. Also, manufacturing facilities have shown an increased likelihood of relocating to different states. I theorize that manufacturing facilities relocating and expanding in different states is primarily due to state tax policies. This phenomenon has increased within recent years due to the increased mobility associated with the digital age. I hypothesize that states with lower individual income taxes, corporate income taxes, and sales taxes will have a greater percentage of their economy made up of the manufacturing sector. Analysis of Bureau of Economic Analysis data indicates mixed results. Further study is merited. Constructing state tax codes to promote the highest amount of economic growth is a continuous on-going challenge in this fast-changing world. It is the goal of this research to gain further insight on how to promote the growth of the manufacturing sector

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