Toledo Blade: Taxpayers Can’t Afford Blank Checks to Business
Santa Claus has parked his sleigh for another year. But for a lot of businesses, the penchant of state officials—including those in Ohio and Michigan—to play Jolly Ol’ Saint Nick with taxpayer money is the gift that keeps on giving.
Ohio offers hundreds of millions of dollars each year in economic incentives—grants, loans, a broad array of tax breaks—to businesses. The case that these incentives stimulate valuable development and help preserve and create good jobs, in Ohio and the states with which it competes, is frequently more asserted than proved.
The Pew Center report, “Avoiding Blank Checks: Creating Fiscally Sound State Tax Incentives,” warns that states that don’t control the cost of their tax incentives court fiscal risks.
As [Pew’s] Mr. Chapman notes, the choice that states face isn’t between offering no incentives at all and tossing them around like party favors.
Rather, it’s a question of knowing — and responsibly limiting — what you pay out each year in incentives, and determining what you get in return.
Read the full article at toledoblade.com.