Texas has been utilizing tax incentivize economic development in the state. The problem is these incentives are applied unequally and are often motivated by political expedience than sound economic strategy.
Key points:
- Evidence suggests that the use of current government-run economic development tools does not produce the desired result of increased economic activity.
- Tax incentives and abatements given to large businesses disincentivize startup of smaller businesses.
- Tax abatement and incentives are rarely considered as the factor that tips a business’s decision where to locate.