All reports by date
Local government officials are determined to force development to happen when it can’t stand on its own, creating oversupply that hurts existing businesses. Or the private sector happily rakes in all the new incentive cash to do something it would have done anyway.
Both proposals are costly, so they affect state services to residents, and both play to a myth about Iowa taxes on business, which are below business taxes in most states already.
The world is upside down when state subsidies of business are presumed to be essential, and when a leading newspaper criticizes those who dare to question it.
By Mike Owen, Iowa Policy Project
It’s time for a little accountability.
Carrie Norris’ guest column (“Development initiatives have strengthened economy,” March 27) echoes business lobby cheerleading for Iowa’s research activities credit (RAC). Norris, president of the Homebuilders Association of Read more
By Peter Fisher, Iowa Policy Project
Headlines in last weekend’s editions of The Gazette say so much: • “State leaders didn’t do their homework” (Feb. 16 column by Jennifer Hemmingsen). • “State’s business lures don’t measure the net catch” (Feb. Read more
States ranked better by ALEC for their policies actually have done worse economically.
New Report Recommends Statewide Reforms to Stop Abuses
Full report plus executive summary (15-pg PDF) November 21, 2011Executive summary (2-pg PDF)Appendix (Maps by community) (9-pg PDF)News release below (2-pg PDF)
IOWA CITY, Iowa — Poorly understood, hotly debated and often Read more
Business tax breaks turn out to be an expensive and inefficient way to attempt to stimulate a state economy.
Through a largely closed-door legislative process, legislators crafted a bill without public testimony or expert review and makes very minimal changes to current law. While the Governor called for action on the Tax Credit Review Panel’s recommendations to build $52 million in savings into his proposed Fiscal Year 2011 budget, the legislative package rejects almost all of that panel’s recommendations.
It is critical to establish a credible way to estimate economic activity produced by any economic development program — and the degree to which the activity would have occurred anyway.