Tax Givaways
NC Legislators said to be using flawed data to lure new businesses
Submitted by jpearson on Wed, 03/21/2007 - 12:09pm.
According to a study by the N.C. Budget & Tax Center in a March 21, 2007, article by Jonathan Cox at the N&O, the method NC uses to estimate benefits to be gained from large give-aways to lure business to NC is flawed. This means lawmakers making key decisions to give away future income and tax benefits to companies in exchange for building in NC are based on misleading information that does not accurately predict the benefits of the deals.
"Instead of pumping millions of dollars into state coffers, some economic development deals might actually be costing revenue and hurting taxpayers, according to the study by the N.C. Budget & Tax Center, a non-profit group that advocates for the poor."
Read the complete article...
News and Observer
March 2q1, 2007
Jonathan B. Cox, Staff WriterReport challenges N.C.'s incentives formula
State officials overestimate the benefits gained from companies that get rich incentives to expand in North Carolina, a report says.
Instead of pumping millions of dollars into state coffers, some economic development deals might actually be costing revenue and hurting taxpayers, according to the study by the N.C. Budget & Tax Center, a non-profit group that advocates for the poor.
