Can state tax policies be used to promote entrepreneurial activity?

@article{Bruce2012CanST,
  title={Can state tax policies be used to promote entrepreneurial activity?},
  author={Donald Bruce and John A. Deskins},
  journal={Small Business Economics},
  year={2012},
  volume={38},
  pages={375-397}
}
Despite a recent flurry of empirical research on the effects of taxes on small business activity, state-level taxes faced by entrepreneurs have been overlooked by most of the existing literature. Using a 50-state panel of tax policy information spanning the years 1989 through 2002, our analysis reveals that state tax policies generally do not appear to have quantitatively important effects on entrepreneurial activity. When we find statistically important effects, we find that higher individual… 
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