AUSTIN – Today the Texas Public Policy Foundation released a paper by Center for Local Governance Senior Policy Analyst Jess Fields on how tax abatements increase taxes for taxpayers. The study, “The Failure of Tax Abatements: Corporate Handouts that Just Don’t Work For Taxpayers,” recommends that local governments focus on economic growth by creating overall better business environments instead of incentives to specific companies.
“Texas cities have become infatuated with the use of tax abatements, which are incentives that allow government to pick winners and losers by giving some corporations a special tax break while other taxpayers pick up the tab for their tax bill,” said Fields. “They are a form of crony capitalism and have a history of being ineffective as shown by both academic research and real-life examples.
“Rather than the use of tax abatements, government should encourage sustainable economic growth through the application of sound good governance principles. They should keep taxes low for all taxpayers, cut unnecessary red tape and delays due to permitting and planning processes, and allow flexibility in their land use planning so that development is able to occur. Together, these policies will empower job creators and expand economic opportunity for all Texans."

To read the full report, visit: 

The Honorable Jess Fields is senior policy analyst with the Center for Local Governance at the Texas Public Policy Foundation. 

The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas.

Find us on Facebook
Follow us on Twitter