State Corporate Income Tax Analysis

Corporate income taxes are volatile, as they are taxes on production. When corporate income taxes get high enough, the business will produce less in that state. This is because the business, as opposed to the customers, are the less elastic side of the market. Customers, the more elastic side of the market, may decide to no longer buy from the business at the higher price. Elasticity also increases the more time passes after a price change.

View entire presentation