Report
Should Congress Authorize States to Continue Giving Tax Breaks to Businesses?
Key Findings:
- The Cuno decision declared unconstitutional many of the most costly, ineffective, and unaccountable business tax breaks granted by states and localities.
- Such tax breaks chiefly shift jobs among states while impairing the states’ ability to fund education and transportation services that do enhance job growth and national productivity.
- The proposed “Economic Development Act” would reverse Cuno, thereby preserving such unproductive incentives.
- Enacting the “Economic Development Act” also could open a “Pandora’s Box” of new forms of state tax discrimination against interstate commerce.