Taking your wife’s purse to buy drinks for the girls

September 16th, 2011 by Joe Kristan

Iowa’s politicians called press conferences yesterday to talk about how they gave away taxpayer money to Microsoft and Alcoa. The companies are expanding existing facilities, and the politicians are quick to claim the credit for the “new jobs.”
Leaving aside the question of whether the companies would have done the same thing without our money, it’s important to remember the costs that never are mentioned at the ribbon-cuttings. Tax Policy Blog discusses how it works in Michigan — but applies just as much in Iowa:

What is “seen” when government agencies endow firms with special targeted tax credits is a mobilization of capital, hiring of workers and increases in investment expenditures. There is no doubt that these credits are intended to stimulate the economy. However, often


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