Expand incentives wisely

The state Senate wisely amended a bill expanding incentives available to new industry before passing it Tuesday.
The original bill, sponsored by Sen. Arthur Orr, R-Decatur, extended the availability of capital credits on corporate income tax for new and expanding industries.
It reflected an unfortunate reality. Large companies have huge leverage, and states are competing aggressively to attract them.
Alabama cannot afford to lag behind in the competition.
As amended, the bill avoided retroactive expansion of the income-tax credit. This was wise. Using tax dollars to attract new business makes sense. Using them to reward those that have already agreed to locate in the state is wasteful.
The corporate income tax funds our state’s public schools. New industry benefits the entire state, including our schools, so carefully applied incentives are an important tool. We must be constantly vigilant, however, that the money we are spending is not wasted.

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1 Comment

Filed under education, Subsidies

One response to “Expand incentives wisely

  1. It’s sad that we find ourselves having to characterize common sense as wisdom.

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