Abstract

To determine why state governments often use tax-based incentives, this study focuses on five major tax-based incentives: job creation tax credits, investment tax credits, R&D credits, property tax abatements, and customized job training subsidies. The statistical results indicate that a state government’s prevailing political ideology influences the choice of economic development activities. Accordingly, a more liberal state is less likely to use property tax abatements and customized job-training subsidies, and more likely to use job creation tax credits and R&D tax credits. Further, competition does not operate to trigger tax-based incentives. State economic conditions are not significantly related to the use of incentives. This result could imply the prevalence of political factors in the use of incentives.

摘要

为了确定为什么州政府经常使用基于税收的激励措施，本研究重点关注五种主要的基于税收的激励措施：创造就业税收抵免、投资税收抵免、研发抵免、财产税减免和定制的职业培训补贴。统计结果表明，州政府的主流政治意识形态影响经济发展活动的选择。因此，一个更自由的国家不太可能使用财产税减免和定制的职业培训补贴，而更有可能使用创造就业的税收抵免和研发税收抵免。此外，竞争不会触发基于税收的激励措施。国家经济状况与激励措施的使用没有显着关系。这一结果可能意味着政治因素在激励措施的使用中普遍存在。