Posted on 07/24/2014 1:34:16 PM PDT by ThethoughtsofGreg
As the quest for tax reform sweeps the nation, policymakers are faced with the dilemma of how to best build a tax code that promotes fairness, removes roadblocks to economic growth and maintains enough revenue to provide the proper amount of public services. As ALEC has pointed out Rich States, Poor States and other publications, low tax rates and smart tax choices are the path to prosperity because they increase a state’s competitiveness and are the least hurtful to productivity.
However, in the effort to lower rates and make the tax code less of a burden, there is another impediment that has proliferated across the states: tax cronyism, or exceptions in the tax code that allow targeted individuals, firms or industries the opportunity to pay lower taxes than the statutory rate. In the new report, The Unseen Costs of Tax Cronyism: Favoritism and Foregone Growth, ALEC details the pitfalls and false choices presented by tax carve-outs and conducts an extensive review of tax cronyism in the 50 states.
(Excerpt) Read more at americanlegislator.org ...
Yep. Happens all the time and freepers will defend it in practice because "it brings jobs" to the states
It's amazing how some freepers will accuse liberals of being simpletons with regard to taxes, but are just as simplistic in their own analysis.
"Lowering tax rates will not necessarily lower tax revenues you stupid liberals. Lower taxes will lead to more economic activity which could actually increase tax revenues." OK, that makes sense.
"Well we couldn't get a lower tax rate for all companies, but we got our governor to get a lower rate for one particular industry or one particular company. That's better than nothing." Nope. That is worse than nothing. That is one industry or company paying kickbacks to the governor in the form of campaign funds in order to give those companies a non-market-based advantage over their competitors.
It's like the libertarians who support open borders but oppose welfare handouts: Well we can't get the people to get rid of the welfare handouts, but at least we can open the borders.
“Woo-hoo” they say “Our government gave them $500 million in tax breaks and now we get a factory!”
How about all the other companies in the state? They’ll pick up that slack? Why can’t they all get a tax cut?
Brave New World
they got their drugs their free sex their open borders but they had to become a tyranny to get them.
libertarians: Good trade.
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