It’s Fix the Tax Code Friday!
Over the past few weeks, I’ve reported on a number of industry-specific tax credits offered to businesses, including tax credits for the tech industry and for the movie industry. Reports have been mixed as to whether these credits produce any results.
I’m interested to know what individual taxpayers think. So today’s Fix the Tax Code Friday question is:
Should tax credits be extended to specific industries in order to attract (or keep) business in your state? If so, which industries?
(It would be great if you included the state where you live in your answer!)
Generally, no. Here in WA state, we’re seeing a company pit two cities against each other in order to gain tax concessions, and while I undertand that motivation of the localities, offereing benefits like this to a large business is grossly unfair to the small businesses who are still paying their taxes in full. IMO, the best way to go is for the states/cities to treat all business equally, and to do otherwise is an insult to the small businesses and employers. That being said, for transient forms of business, such as a temporary movie shoot, I think it can make sense to offer some form of incentive to bring that business in since it’s going to be done somewhere, and it’s not going to be a permanent activity, but it probably should be coupled with requiring that locally based businesses be used.
Selective taxation is such a WONDERFUL way to punish those who harbor a different philosophy of any kind. Used in conjunction with Eminent Domain, all sorts of things get done. We see it all the time here in Minnesota.