Abstract
This paper examines the effect of the formulary apportionment system on state-level economic development. All three apportionment factors, when combined with the corporate tax rate employed by each state, are shown to have a significant negative association with the percentage change in manufacturing employment. However, further analysis suggests that the corporate tax rate, and not the apportionment formula, may be driving employment growth. Also, the findings do not support the importance of the throwback rule or the recent trend to overweight the sales factor in attracting economic development to a state.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
