Incentives

Economic impact studies are common. They usually are invoked by government or special interest groups to demonstrate how a particular spending or tax incentive policy will affect variables such as…

Recently, I was researching on an economic modeling company called Regional Economic Modeling, Inc., better known as REMI. REMI is one of several companies that produce economic models used by…

Here Comes Incentives Clause Here comes incentives clause Jacked way up because That’s what “big boys” expect. It’s just a plum deal Plumb unnecessary “Playing Santa” cronyism dreck.

When are special interest subsidies not just special interest subsidies? When the special interests receiving the subsidies hire a consultant to do an economic impact study. And how often does…

This week, the bids were all finally submitted for Amazon’s new HQ2.  Raleigh shipped a 32-pound box (!) containing its proposal.  Charlotte set up a website.  Winston-Salem, Greensboro,…

Last week (9/22), Carolina Journal’s “Daily Journal” featured an important article by my colleague Jon Sanders. It focused on Amazon’s attempt to fleece North Carolina’s taxpayers by soliciting an unprecedented incentive…

Between FY 2009 and FY 2014, 81 out of North Carolina’s 100 counties participated in economic development activities. Counties entered into 776 contracts worth nearly $284 million in incentives over the five-year period. Actual payments, however, totaled $144 million.

The governor and Republican members of the state legislature are advocating for a host of new incentive programs and the extension and/or expansion of others. However, these programs are likely to harm consumers, investors, and entrepreneurs who are not privy to the subsidies.

Cronyism is an umbrella term covering a host of government activities by which an industry or even a single firm or speculator is given favors and support that they could not attain in market competition. This report explains what opens government to cronyism, gives a brief rundown of recent examples of cronyism in North Carolina, and offers several possible reforms.

Once a popular off-Hollywood venue for filmmakers before state film tax incentives, North Carolina is now one of the leaders in a race to the bottom among other states and nations in giveaways to movie production companies. The incentives show that state leaders know that lower taxes and regulations attract industry. So why play favorites with industries? Why not just lower taxes and regulations altogether?