Carl Davis, research director at the nonpartisan Institute on Taxation and Economic Policy, says state taxes don’t play that large a role in economic development decisions. Companies search for an ideal location and a trained workforce and balance a host of other factors during site selection.
“There’s just so much more than state tax policy that goes into determining if an area will be economically successful,” he said.
If the idea of the legislation is to reduce poverty in an economically stagnant area, that goal could be better achieved through statewide tax reform, Davis said. Reducing taxes for low-income families across the board could be easier than targeting specific localities, he said. Read more