...and a suggestion. A few days ago we wrote a post here about an op-ed piece in the IBJ by an IUPUI law professor. She seemed, to us, to be somewhat off track in her assessment of many of the basic financial problems of the city. Among other things she referred to, for instance, was property tax caps starving local governments, with little or no reference to how tax revenues generally were being spent.
The same author has another op-ed piece in this week’s IBJ, and we are delighted to see that she has apparently started across to our side of the street concerning corporate welfare. ("Welfare" is our word. Not hers.) Her final three paragraphs are worthy of direct quotation;
"It’s long past time to re-examine these programs and the policy assumptions. It was probably inevitable that the use of tax and other incentives would not be limited to truly depressed areas; I was among those who failed to appreciate that inevitability.
"Here’s a truly radical suggestion: What if we took the tax dollars that are siphoned off to these favored businesses and used them to create a city people want to live in?
"What if we decided to compete not with handouts, but with a superior quality of life."
Amen! We couldn’t have said it better! (Although we do claim to have said it oftener!) And we would flesh out her suggestion with repetition of a proposal we offered some time ago.
Our first, and probably most crucial, recommendation would be repeal of all laws establishing and operating redevelopment commissions as they now exist. They are the source of most of the issues, particularly in their use of tax policy for the specific purpose of directing the location of economic activity geographically.
The entire business community of Indiana should unite at the statehouse with legislation which would enable a nation-wide business attraction effort based as follows.
"Come to Indiana. Here’s what we will do for you. State and local governments will provide needed infrastructure for your business to operate efficiently. Further than that, we will provide a governmental-economic structure designed to let you operate with the least possible interference. Your tax burden will be determined by the needs of government to provide legitimate governmental services and amenities to all citizens.
"Come to Indiana. Here’s what we will not do to you. We will not tell you where to locate your business for our political purposes. We will not tax those already here for financial subsidy for you, nor will we tax your business, or your employees, to subsidize other commercial ventures in the future.
"Come to Indiana. If you have a sound business model, it will flourish here! This is a state which believes in free enterprise for its corporate citizens and an excellent quality of life for all citizens."
Are there still enough people around who believe in freedom of, and responsibility for, one’s actions to make this kind of program work? Be interesting to find out, wouldn’t it?
Hear! Hear!
Posted by: mkmk | November 07, 2011 at 01:54 PM