Sponsored by Lane Powell
Home Back Issues April 2013 Expert opinion: do tax credits and business incentives create jobs?

Expert opinion: do tax credits and business incentives create jobs?

| Print |  Email
Articles - April 2013
Monday, April 01, 2013

 

BY EMMA HALL

0413 FOB ExpertOpinionOregon’s tax credits and other business incentives have attracted significant media attention recently, from Nike’s 30-year corporate tax agreement deal to allegations that SoloPower failed to deliver on job-creation promises despite landing $20 million in tax credits. The 
state and local governments extend hundreds of millions of dollars each year in property tax waivers, corporate income tax credits, rebates and loans. Yet the question remains: Do tax credits and incentives actually create jobs?

Tim Duy Senior Director, Oregon Economic Forum

“You’re playing something of a game with incentives and business strategies — sometimes you’re going to win and sometimes you’ll lose. It’s a zero-sum game that plays states and cities against each other, shifting jobs from location A to location B. The reality is that there will always be a political force pushing for business development incentives, so the real issue is how to structure those incentives in such a way to maximize our benefits and minimize our risks as a community.”

Chuck Sheketoff Executive Director, Oregon Center for Public Policy

“Business tax incentives don’t create jobs. They siphon money from what really creates a favorable business climate: strong public structures and a strong middle class. Taxes are at best a minor factor in investment decisions. Customer location, an educated and skilled workforce, quality public infrastructure — these are what really matter. Sure, some corporations will gladly take and even extort state tax subsidies for actions they were going to do anyway. Rather than subsidize profitable corporations, we should invest in top-notch education, health care, infrastructure and workforce training systems that will strengthen Oregon’s economy.”

Rachel Shimshak Executive Director, Renewable Northwest Project

“Incentives create jobs in partnership with other policies, like the renewable energy standard and the Energy Trust of Oregon. On the federal level, every energy resource benefits from tax policy. But renewables face market barriers, as some of the benefits associated with them — good for the environment, no carbon output — aren’t reflected in the cost, and there’s no way to quantify them. So we turn to policy to reduce the impact of these market barriers. The investments have created jobs, but they’ve also created a long-term benefit for the state by helping support local communities.”

 

Comments   

 
Guest
+2 #1 Just one part of whole systemGuest 2013-04-16 18:32:57
Taxation is just one part of what helps a region foster entrepreneurshi p, self-sufficienc y and job creation. We need to look at larger scale examples to see that states with lower taxation and restriction on job creation tend to have more economic activity and lower unemployment. When we get government spending/debt under control it creates economic opportunity through greater certainty. Who wants to set up business in a state that could confiscate more and more of hard earned returns?
Quote | Report to administrator
 

More Articles

Fast Food Slows Down

September 2014
Tuesday, August 26, 2014
BY KIM MOORE

The ubiquitous fast-food restaurant may be on the decline.


Read more...

Community colleges and sustainability

Contributed Blogs
Thursday, July 31, 2014
sustainabilityBY MARY SPILDE | OB GUEST CONTRIBUTOR

Faced with the aftermath of the “great recession,” increasing concern about the environment and dwindling family wage jobs, we have some very important choices to make about our future.


Read more...

South Waterfront's revenge

News
Thursday, July 24, 2014
MoodyAveBY LINDA BAKER | OB EDITOR

Remember the naysayers?  Those who called the South Waterfront aerial tram a boondoggle?  Those who rejoiced at the massive sell off of luxury condos at the John Ross and Atwater Place?


Read more...

Poll Wrap-Up

News
Friday, August 15, 2014

2014 NewPoll-report-newsletterthumbIn this week's poll, we asked readers: "Who should pay for the troubled Cover Oregon website?" Here are the results.


Read more...

Startup or Grow Up?

September 2014
Tuesday, August 26, 2014
BY JON BELL

Startup culture is all the rage. Is there a downside?


Read more...

Managing family assets: The importance of planning ahead

News
Friday, August 22, 2014
Unknown-1BY CLIFF HOCKLEY |  OB GUEST CONTRIBUTOR

When business intersects with family, a host of  situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.


Read more...

Molecular Movies

September 2014
Wednesday, August 27, 2014
BY LINDA BAKER

Dr. Chong Fang isn’t God. But the assistant professor of chemistry at Oregon State University is getting closer to figuring out how he put everything together. 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS