We have all heard politicians claim that tax incentives, cuts, and loopholes will encourage business to grow in our communities and hire more people. The problem is, it just isn’t true.
New research out today finds that only 30% of business executives actually knew they were receiving a tax credit for “engaging in qualified job creation, machinery and equipment investment, research and development investment, and other activities in the state.”
When we think about it fully, this makes sense. Businesses will hire more staff only when they need additional people to meet demand, not because they have extra cash laying around. That extra cash from the incentive is profit. Businesses continue to report that access to a highly skilled workforce, infrastructure, and markets are the common needs considered in location decisions. In the analysis, on a scale of 19 factors, business executives ranked tax incentives as 15th (those not receiving the credit) and 16th (those receiving the credit).
We need all businesses to pay their fair share, instead of creating loopholes for those with good lobbyists.