State corporate tax hikes kill jobs and reduce income, according to a new study published by the National Bureau of Economic Research. However, corporate tax cuts do not spur income or employment gains unless the cuts occur during a recession.

A one percentage-point increase in the corporate tax rate reduces employment by as much as 0.5 percent. In a state such as California, a one percentage-point corporate tax hike could reduce employment by over 86,000 jobs.