Fed study: States with low welfare growth, simple tax rates grow faster

From Newamax:
States with simpler tax codes and lower welfare payments have stronger wage and employment growth than other states in the union, research published Tuesday by the U.S. Federal Reserve Bank of San Francisco showed. The findings, published in the San Francisco Fed's latest Economic Letter, suggest that state policymakers can goose economic and job growth by fostering a better business climate as measured by taxes and other costs. "Corporate tax simplicity and uniformity with federal taxation are associated with stronger wage and gross state product growth," wrote David Neumark, a University of California, Irvine economics professor and visiting scholar at the regional Fed bank. "States with higher welfare and transfer payments show weaker employment and wage growth."

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