Title

Rethinking Tax Incentives

Authors

Timothy J. Bartik, W.E. Upjohn Institute for Employment ResearchFollow

Upjohn Author ORCID Identifier

https://orcid.org/0000-0002-6238-8181

Publication Date

1-13-2021

Source

Perspectives on Work 22: 62-64

Abstract

The closest thing to a placebased U.S. industrial policy is state and local business tax incentives. Many current incentives are poorly designed. They cost too much, and they do too little to promote more jobs at higher wages.

Reforms are needed to rein in incentives, by targeting incentives more at high-multiplier jobs in higher-wage industries. The funds saved could be devoted to more effective policies to create local jobs, such as those in customized business services to small businesses.

Publisher

University of Illinois Press

Subject Areas

ECONOMIC DEVELOPMENT; Regional policy and planning; Business and tax incentives