Friday, March 26, 2004
An extensive review of the economic literature leads to a core conclusion: state tax incentives don't grow jobs. The author, Robert G. Lynch, analyzed hundreds of research studies that examined the effectiveness of in promoting economic development. His conclusion: tax incentives don't work.
What's worse, they can actually erode a state's competitiveness by reducing the revenues needed for investment. The result: states actually become less competitive over time. Read more.
Kentucky's new governor has proposed a major overhaul of the state's tax system. I used this report and others to develop an analysis for the Kentucky Industrial Development Council on the pending proposal to reform Kentucky's tax base. The KIDC Board of Director's used this analysis as one source to help arrive at their decision earlier this week to support the passage of the governor's proposal.
You read my analysis of the governor's tax reform proposal on the KIDC web site. Go.
posted by Ed Morrison |
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Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
If you are using a news reader, here is the link to syndicate this site:
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
State tax breaks don't grow jobs
