November 30, 2016

The Atlantic: Why It’s So Hard to Know What to Make of the Carrier Deal

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“Additionally, some economists say that it’s bad policy for states to offer up tax breaks for companies who agree to locate plants or other operations in certain communities, a practice that is widespread, with states and municipalities already providing $50 billion in location-incentive tax breaks every year—that’s money that could be used for schools or roads but instead companies get to keep. States can end up in a race to the bottom, in which companies stay in one place until another offers them an even better deal. ‘State and local tax incentives come at an enormous cost,’ writes the Institute on Taxation and Economic Policy in a report.”

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