Monday, October 27, 2014

States, Cities, Want to deplete your tax base?

Want to deplete your tax base? Give 'job creators' what they want - LA Times: "....Virtually all of the published research on the subject shows that most economic development incentives are a senseless waste of taxpayer money. The Lincoln Institute of Land Policy, for example, studied the issue and found that “instead of creating new jobs or spurring employment, the main effect of incentives is simply to deplete a community's tax base.” Poorer, less advantaged communities often take the biggest hit, being more likely to gamble public funds on the hope of new factory jobs. My own analysis found no connection between incentive dollars spent per capita and such measures of economic success as wages, incomes, human capital levels or unemployment. It's time to put an end to incentive madness once and for all."--Richard Florida, director of the Martin Prosperity Institute at the University of Toronto, a global research professor at New York University and senior editor at the Atlantic, where he co-founded CityLab.


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