Governing: With Amazon Out of New York, Some Lawmakers Seek Multistate Ban on Corporate Tax Breaks

Opponents of such deals cite data that suggest that tax incentives often aren’t worth what they cost governments.

An Institute on Taxation and Economic Policy study noted that most giveaways simply move pieces on a chessboard, rather than create actual growth. “In the case of retail, as much as 90 percent of the apparent direct benefits of tax incentives are offset by losses among the subsidized retailer’s local competitors,” the study says. “While this figure is likely to be lower for industries serving a more national market, states constantly run the risk of harming existing businesses within their borders when they attempt to give some companies a competitive edge through the use of tax incentives.” Read more