How Taxes And Services Affect Economic Development

According to a new publication, state and local tax cuts are not the best use of public revenues, even to encourage job growth.

1 minute read

March 26, 2004, 5:00 AM PST

By Chris Steins @planetizen


As state and local governments expand efforts to promote economic development, one increasingly popular technique for encouraging investment is the use of state and local tax cuts and tax incentives to lure businesses. However, according to a new publication by the Economic Policy Institute, an analysis of the relevant research literature finds little grounds to support tax cuts and incentives—especially when they occur at the expense of public investment—as the best means to expand employment and spur growth. Editor's note: The link below is to an expanded executive summary and introduces the findings of the publication. The full publication is available for a nominal fee.

Thanks to Chris Steins

Wednesday, March 24, 2004 in Economic Policy Institute

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