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positive spillover effects

Why Financial Incentives Do Not Increase Economic Activity

By Mr. Jacob Bundrick In my last post, I went over the basics of why tax incentives and subsidies are considered staples of economic development. In this post, I’ll explain why they don’t work as politicians might hope. A common argument in favor of financial incentives is that tax breaks and subsidies motivate firms to […]

Posted in: Taxation on August 23, 2016 Tagged: corporate welfare, economic development, negative spillover effects, positive spillover effects, subsidies, tax breaks, tax incentives

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