January 17, 2014

Southtown Star: Tax breaks for businesses too costly

media mention

(Original Post)

January 15, 2014 8:20PM
Updated: January 16, 2014 7:28AM 
Those who think that offering tax incentives to corporations to keep them in our state should look at a study by the non-profit Institute on Taxation and Economic Policy. The study concludes that tax incentives not only are too costly for states but provide little benefit to them and localities and are a drag on the national economy to boot.
Companies are rarely influenced to choose a state based on tax incentives. The billions of dollars in incentives offered every year often means reductions in public services that individuals and those businesses use every day. The study found that investments in education and infrastructure are much more fundamental to any successful economy.
The Institute on Taxation and Economic Policy recommends that lawmakers ensure that businesses granted tax breaks be required to meet certain conditions — a cap on the incentives, the jobs created should have a living wage and benefits, incentives should be targeted toward localities most in need of an economic boost and a guarantee that the government recoups its payments if job creation goals are not met.
Don’t you have to wonder why welfare to multimillion-dollar corporations in the form of tax incentives, subsidies and write-offs seem to go unabated while public assistance to the poor and middle class relief is debated or denied?
Dennis Gorecki
Orland Park

January 15, 2014 8:20PM

Updated: January 16, 2014 7:28AM 

Those who think that offering tax incentives to corporations to keep them in our state should look at a study by the non-profit Institute on Taxation and Economic Policy. The study concludes that tax incentives not only are too costly for states but provide little benefit to them and localities and are a drag on the national economy to boot.

Companies are rarely influenced to choose a state based on tax incentives. The billions of dollars in incentives offered every year often means reductions in public services that individuals and those businesses use every day. The study found that investments in education and infrastructure are much more fundamental to any successful economy.

The Institute on Taxation and Economic Policy recommends that lawmakers ensure that businesses granted tax breaks be required to meet certain conditions — a cap on the incentives, the jobs created should have a living wage and benefits, incentives should be targeted toward localities most in need of an economic boost and a guarantee that the government recoups its payments if job creation goals are not met.

Don’t you have to wonder why welfare to multimillion-dollar corporations in the form of tax incentives, subsidies and write-offs seem to go unabated while public assistance to the poor and middle class relief is debated or denied?

Dennis Gorecki

Orland Park

 

 


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