This article summarizes current research on relationships among economic development, infrastructure, and the tax system.
"Recent court decisions have made economic development and tax policy front-page news. The recent U.S. Supreme Court decision in Kelo v. City of New London raised a public outcry when it allowed local governments dramatic latitude in acquiring private property for economic development purposes. This case had a fiscal aspect as well, for it illustrated how financial pressures can lead local governments to seek alternatives to direct investment for economic revitalization and redevelopment.
Economic development was also the focus of a major lower court decision on state tax policy. In Cuno v. DaimlerChrysler, the 6th Circuit Court of Appeals found that Ohio’s investment tax credit, intended to attract businesses from other states, violated the Commerce Clause of the U.S. Constitution (Hellerstein 2005). These and other, similar cases raise many questions about the connections between economic development and tax policy."
FULL STORY: Connections Between Economic Development and Land Taxation

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