Cumo Vs. DaimlerChrysler: End of Big Incentives?
That is the question raised in a recent Nashville news article: "Millions of dollars in incentives states use to lure companies, such as Tennessee did for Nissan, may be outlawed depending on a U.S. Supreme Court decision expected next year.The high court has agreed to hear arguments March 1 on a case that could impact whether states are able to grant tax credits in their attempt to lure companies into their areas."
Read more here.
What do you think will be the Court's decision?
posted by Don Iannone, D.Div., Ph.D. at
Friday, December 16, 2005
2 Comments:
This is definitely THE BIG ISSUE, isn't it? Thanks for the link to the Nashville story; it was interesting to read the comments from non-ED people. (For instance, the "it's all a plot to destroy states' rights" was not an argument I had thought of before in this context, although it's an interesting take on the issue.)
In the decade I've been active in economic development, we've seen the game change from "incentives are the last thing on the agenda" to incentives being nearly the first question. Individual communities or even states are really not equipped to address this on their own. It amounts to unilateral disarmament which, as one will recall from the Cold War, was never a popular strategy. Perhaps the Cold War analogy can be taken a step further - the Cold War ended when one side more or less crumbled into itself and the other side won. Is that what will happen absent an outside (i.e., Supreme Court) action - that some states will simply destroy their own tax base? I hope not.
I appreciate your continuing to discuss this topic, Don. It's very important both to the profession and to our communities. We need to come up with better answers than we have so far.
By
Anonymous, at 8:28 AM
Karen,
Thanks for stopping by ED Futures and leaving your thoughtful comments.
I am troubled by the role of incentives in our business. It's out of control.
If I could wave a magic wand over economic development, that wand would purify our business of this unwholesome practice.
The practice of giving incentives has reduced us to the role of being groveling handmaidens to selfish and powerful business interests that prey on communities, milk their resources, and make them feel guilty when they don't give enough.
We are capable of far more! It's high time we were about those things that are really important.
Don
By
Don Iannone, D.Div., Ph.D., at 8:44 AM
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