Another look at tax policy and state economic growth: The long-run and short-run of it

•I use a spatial Durbin model to estimate the short and long run effects of taxes on state economic growth.•Data for 48 contiguous US States.•Taxes have negative short and long run direct, spillover, and total effects on state economic growth.

I use a spatial Durbin model to estimate the effects of taxes on state economic growth. Results indicate that taxes have negative short-run and long-run own-state and spatial spillover effects on state growth.