MetroNews ‘Talkline’ Debate: Are Tax Credits Worth It?
West Virginia Metro News — Two advocates for more efficient government spending in West Virginia say tax credits for economic development projects should be viewed the same way as direct spending in the budget because such credits eliminate revenues that could have otherwise been collected. Read
“There’s nothing wrong with them (tax credits) if they’re used properly,” said Bill Maloney, a former Republican gubernatorial candidate who is now president of the Center for a Brighter Future. “The big problem we have in West Virginia is the transparency issue. You really have no idea what the benefits of these things are.”
Ted Boettner, executive director of the West Virginia Center on Budget and Policy, agreed.
“Oftentimes, these subsidies to businesses are rarely analyzed and monitored,” he said. “They often go to companies that would have built here anyway and they also divert money from public goods and services. They have a whole host of hidden costs, especially when they’re not paying good paying wages.”