Or is this?
Cities looking to spur economic growth should reconsider those tax breaks and subsidies intended to lure out-of-state corporations, and invest in local entrepreneurs instead, a new report suggests
https://nextcity.org/daily/entry/corporate-subsidies-states-should-invest-entrepreneurs
State Job Creation Strategies Often Off Base,” a report by Michael Mazerov and Michael Leachman with the Center on Budget and Policy Priorities, indicates that only 1 to 4 percent of total job creation each year stems from relocated out-of-state firms. About 87 percent of private-sector jobs created between 1995 and 2013 stemmed from in-state businesses, created by startups, entrepreneurs or the expansion of employment at existing companies.
Cities are hotbeds of entrepreneurship, but they’re still offering millions of dollars in subsidies and tax breaks to lure large corporations even when those corporations create relatively few positions, for example Apple's new global command center here with about maybe 90 jobs.
“Policymakers should reject major income tax cuts and new corporate relocation subsidies, and reconsider those already enacted,” argue the report’s authors. “Public investments that help build a skilled workforce and improve the quality of life for local residents are better bets ― successful entrepreneurs report these factors are key to where they founded their companies.”
The report cites a 2014 study of 150 founders of some of the United States’ fastest-growing companies, which found that only 5 percent of entrepreneurs cited low tax rates as a factor in deciding where to locate.
The majority chose to start their businesses based on where they lived at the time. When asked why they lived where they did, founders cited quality of life factors like access to recreation or cultural institutions. Most founders had lived in their cities for at least two years before starting their companies.
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