exposure

I will eventually begin to look at specific exemptions and more substantive issues of tax breaks, but for now I would like to finish laying the foundation of this blog. That is to say that I want to convey to everyone why I started A Taxing Issue. I think that I have done a fairly decent job so far at describing how I think state tax breaks and incentives are inefficient and unfair to smaller businesses. But while I have noted that the Wall Street Journal and The Economist missed golden opportunities to criticize state governments, I need to make it more clear a key reason why I am covering this issue at all: no one talks about it!

When I say no one talks about it, I think of the lack of interest of everyday citizens, the media, as well as think-tanks and the like. But I really don't understand why two groups, in particular, don't make more of an issue out of state tax breaks and incentives. Those would be elected officials (incumbent and those wishing to join the party) and smaller businesses.

If you wanted to be elected or re-elected, wouldn't you expect significant support for a corporate tax policy that is low and uniform across the board? Industry would like it, those who believe in limited government would like it, and citizens should like it because it will attract investment from within and outside of a state. I say should because there will probably be some cry-babies who feel they are better off under a high tax regime who are able to convince an otherwise naive public that a low and uniform business tax is a bad thing. But much of the public has an irrational fear of large corporations anyways, so I would suspect one could partially confront the problem of naysayers by saying something (with historical support) to the effect that those who support a higher tax regime and/or are against a low business tax plan are more likely to grant favors to corporate America in the form of tax breaks. In short, I think there is plenty of support for a low corporate tax and plenty of opportunity to counter the haters.

As for smaller businesses, their motivation to rally against state tax breaks and incentives should be obvious. They are getting played by the current political system.

I may be wrong and there may be organizations and politicians out there who are rallying the troops for the fight against state tax breaks and incentives. If so, please let me know. For now, the saga continues . . .