Sunday, December 11, 2011

The targeted tax break cycle

Dave Nicklaus outlines a significant problem with the use of state and local tax breaks to keep large and politically influential business from moving out. It is particularly ridiculous in Illinois because the state just raised taxes on everyone and is now trying to hand out tax breaks to prevent the fallout. Once everyone is given their tax break, taxes will be raised again to make up for the revenue shortfall.  Then the state will give out tax breaks to...Well, you can figure out the rest.

It's no secret that those governing Illinois are among the most corrupt and inept politicians around, but this situation is not unique.  It's the inevitable result of incompetent governance.