Making Sense of Incentives PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Making Sense of Incentives PDF full book. Access full book title Making Sense of Incentives by Timothy J. Bartik. Download full books in PDF and EPUB format.
Author: Timothy J. Bartik
Publisher: W.E. Upjohn Institute
ISBN: 0880996684
Category : Political Science
Languages : en
Pages : 180
Get Book Here
Book Description
Bartik provides a clear and concise overview of how state and local governments employ economic development incentives in order to lure companies to set up shop—and provide new jobs—in needy local labor markets. He shows that many such incentive offers are wasteful and he provides guidance, based on decades of research, on how to improve these programs.
Author: Timothy J. Bartik
Publisher: W.E. Upjohn Institute
ISBN: 0880996684
Category : Political Science
Languages : en
Pages : 180
Get Book Here
Book Description
Bartik provides a clear and concise overview of how state and local governments employ economic development incentives in order to lure companies to set up shop—and provide new jobs—in needy local labor markets. He shows that many such incentive offers are wasteful and he provides guidance, based on decades of research, on how to improve these programs.
Author: Roger Wilson
Publisher:
ISBN: 9780872920903
Category : Business & Economics
Languages : en
Pages : 62
Get Book Here
Book Description
Author: Michael Kieschnick
Publisher:
ISBN:
Category : Local taxation
Languages : en
Pages : 388
Get Book Here
Book Description
Author: National Association of State Development Agencies (U.S.)
Publisher: The Urban Insitute
ISBN: 9780877665014
Category : Business & Economics
Languages : en
Pages : 796
Get Book Here
Book Description
Author: Daphne A. Kenyon
Publisher:
ISBN: 9781558442337
Category : Electronic books
Languages : en
Pages : 0
Get Book Here
Book Description
The use of property tax incentives for business by local governments throughout the United States has escalated over the last 50 years. While there is little evidence that these tax incentives are an effective instrument to promote economic development, they cost state and local governments $5 to $10 billion each year in forgone revenue. Three major obstacles can impede the success of property tax incentives as an economic development tool. First, incentives are unlikely to have a significant impact on a firm's profitability since property taxes are a small part of the total costs for most businesses--averaging much less than 1 percent of total costs for the U.S. manufacturing sector. Second, tax breaks are sometimes given to businesses that would have chosen the same location even without the incentives. When this happens, property tax incentives merely deplete the tax base without promoting economic development. Third, widespread use of incentives within a metropolitan area reduces their effectiveness, because when firms can obtain similar tax breaks in most jurisdictions, incentives are less likely to affect business location decisions. This report reviews five types of property tax incentives and examines their characteristics, costs, and effectiveness: property tax abatement programs; tax increment finance; enterprise zones; firm-specific property tax incentives; and property tax exemptions in connection with issuance of industrial development bonds. Alternatives to tax incentives should be considered by policy makers, such as customized job training, labor market intermediaries, and business support services. State and local governments also can pursue a policy of broad-based taxes with low tax rates or adopt split-rate property taxation with lower taxes on buildings than land.State policy makers are in a good position to increase the effectiveness of property tax incentives since they control how local governments use them. For example, states can restrict the use of incentives to certain geographic areas or certain types of facilities; publish information on the use of property tax incentives; conduct studies on their effectiveness; and reduce destructive local tax competition by not reimbursing local governments for revenue they forgo when they award property tax incentives.Local government officials can make wiser use of property tax incentives for business and avoid such incentives when their costs exceed their benefits. Localities should set clear criteria for the types of projects eligible for incentives; limit tax breaks to mobile facilities that export goods or services out of the region; involve tax administrators and other stakeholders in decisions to grant incentives; cooperate on economic development with other jurisdictions in the area; and be clear from the outset that not all businesses that ask for an incentive will receive one.Despite a generally poor record in promoting economic development, property tax incentives continue to be used. The goal is laudable: attracting new businesses to a jurisdiction can increase income or employment, expand the tax base, and revitalize distressed urban areas. In a best case scenario, attracting a large facility can increase worker productivity and draw related firms to the area, creating a positive feedback loop. This report offers recommendations to improve the odds of achieving these economic development goals.
Author: Michael Kieschnick
Publisher: Council of State Policy & Planning Agencies
ISBN:
Category : Business & Economics
Languages : en
Pages : 148
Get Book Here
Book Description
Author: Ana Teresa Tavares-Lehmann
Publisher: Columbia University Press
ISBN: 0231541643
Category : Business & Economics
Languages : en
Pages : 369
Get Book Here
Book Description
Governments often use direct subsidies or tax credits to encourage investment and promote economic growth and other development objectives. Properly designed and implemented, these incentives can advance a wide range of policy objectives (increasing employment, promoting sustainability, and reducing inequality). Yet since design and implementation are complicated, incentives have been associated with rent-seeking and wasteful public spending. This collection illustrates the different types and uses of these initiatives worldwide and examines the institutional steps that extend their value. By combining economic analysis with development impacts, regulatory issues, and policy options, these essays show not only how to increase the mobility of capital so that cities, states, nations, and regions can better attract, direct, and retain investments but also how to craft policy and compromise to ensure incentives endure.
Author: Christian Conroy
Publisher:
ISBN:
Category : Political planning
Languages : en
Pages : 112
Get Book Here
Book Description
Economic development scholars remain divided over whether economic incentives designed to attract businesses to a locality ultimately promote job growth, higher wages and economic development or just give away taxpayer dollars. While some research has found that economic incentives may nudge a company to choose one location over a similar location, others have argued that companies make location decisions based on strategic considerations like human capital and supply chains, and not based on economic incentives. At the same time, even if companies are choosing to locate to a particular locality based on an economic incentive package, it is not clear that the growth they bring is enough to compensate for the loss of tax revenue. In this paper we evaluate the impact of five different types of state-level economic incentives on GDP growth. We use a novel Panel Database on Incentives and Taxes established by the W.E. Upjohn Institute for Employment Research that contains data on marginal business taxes and business incentives for 45 industries in 47 cities in 33 states collected from 1990 to 2015. Using several estimation strategies, including short and long term two-way fixed effects regression modeling and propensity score stratification, we find that economic incentives in the aggregate have a positive impact on state-industry GDP growth but the effects differ across economic incentive types.
Author: Barry P. Bosworth
Publisher: Brookings Institution Press
ISBN: 0815719574
Category : Business & Economics
Languages : en
Pages : 221
Get Book Here
Book Description
The sharp decline in U.S. productivity growth in the 1970s has brought about a renewed interest in economic policies to expand aggregate supply. Particular importance has been given to the role played by government intervention in the form of taxes, transfer payments, and regulation. This volume asks just what is known about the effect of government policy on the productive capacity of the nation. It also looks at the role played by capital formation, technological change, and the quality of the work force.
Author: Nathan M. Jensen
Publisher: Cambridge University Press
ISBN: 1108311423
Category : Political Science
Languages : en
Pages : 271
Get Book Here
Book Description
Policies targeting individual companies for economic development incentives, such as tax holidays and abatements, are generally seen as inefficient, economically costly, and distortionary. Despite this evidence, politicians still choose to use these policies to claim credit for attracting investment. Thus, while fiscal incentives are economically inefficient, they pose an effective pandering strategy for politicians. Using original surveys of voters in the United States, Canada and the United Kingdom, as well as data on incentive use by politicians in the US, Vietnam and Russia, this book provides compelling evidence for the use of fiscal incentives for political gain and shows how such pandering appears to be associated with growing economic inequality. As national and subnational governments surrender valuable tax revenue to attract businesses in the vain hope of long-term economic growth, they are left with fiscal shortfalls that have been filled through regressive sales taxes, police fines and penalties, and cuts to public education.
