Summary
The use of tax credits and other fiscal incentives
Tax breaks such as tax credits, abatements and similar fiscal incentives sometimes defeat their purpose of spurring economic development. While tax breaks create an auspicious business climate, their costs sometimes go beyond community benefits. It has been found that tax incentive programs have had minimal or no impact on industrial location trends. States and communities must instead rechannel their efforts toward economic development on high quality education, superior worker training and modern infrastructure.See the full content of this document
Extract
The giveaway game: you lose.
In recent years, the use of tax credits and other fiscal incentives to stimulate economic development has become increasingly common among state and local governments. In October, Alabama dangled a $330 million carrot in front of Mercedes-Benz in order to "win" a contest with ...
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