3 Reasons: No ROI on Tax Incentives

New Study, Evaluating State and Local Business Tax Incentives, forthcoming in Journal of Economic Perspectives.

• there’s generally no indirect economic benefit from tax incentives
• there is no significant boost to the broader local economy from tax incentives
• companies that would have created the jobs anyway

Possible solution:

• Offer tax rebates instead when goals are met, e.g. Utah

Governing | Tax Incentives: The Losing Gamble States and Cities Keep Making