When All Else Fails, Tax Incentives Probably Will, Too

On its face, Wisconsin’s development policy looks somewhat unhinged. The $3 billion it offered to attract Foxconn’s $10 billion flat-screen-television plant to Racine, near the state’s southeastern tip, is an outrageous price tag.

New Jersey’s offer of $5 billion to lure Amazon to Newark — which comes out at $100,000 for each employee the online retailer would bring to town — is also pretty extravagant. Chicago’s $2 billion in incentives seems sensible only by comparison.

Giveaways like these are often a waste of public money. Research on a program of corporate tax breaks in Texas found that 85 to 90 percent of the projects benefiting from such incentives would have gone forward without them...

   ...more

Ken Notes: A national article calls us "unhinged" -- what we need is policy not politics. My policy would look like this:
  • 10% development TIF local property tax credit with a signed development agreement guaranteeing value (pay as you go).

  • $ 2,000 State income tax credit per new hire for 10 years ($ 20,000 per employee)

  • A regulatory ombudsman to guide new companies through the process
  • Every company in Wisconsin would qualify old or new. Liberal or conservative...



    - - Volume: 6 - WEEK: 19 Date: 5/10/2018 8:44:42 AM -