EDITORIAL: Squashing tax credit would hurt New Albany
One would think state legislators would have more important issues to deal with during this short session rather than taking relatively minimal tax credits and incentives away from Indiana urban enterprise zones.
But the majority of the State Senate thinks it’s meaningful enough to vote 29-21 in favor of Senate Bill 236, which would freeze the loan interest and investment cost credits offered by UEZ associations for two years. The bill would basically put enterprise zones out of business and it now moves to the House for a vote.
Then there's the one that will be giving fits to the feces falangists.
EDITORIAL: Flush politics down the sewer
Sewers have become a downright filthy word in New Albany politics.
Part of that is to be blamed on the political hedging by multiple elected officials during the last decade. Their inaction was a contributing factor to a bad situation becoming worse and devolving into pure shock for residents paying their utility bills.
I would like to point out an irony here. While Senate Bill236 has rightfully drawn the most attention, its sister, Senate Bill237, authored by the same senator from Lafayette, is going almost unnoticed.
ReplyDeleteSB236 would “suspend” for two years, numerous economic development incentives used to attract and retain businesses in Indiana. Among those other provisions, SB236 “Requires that federal income tax withholding statements and annual withholding tax reports must be filed electronically with the department of state revenue if an employer or a person or entity acting on behalf of an employer files more than 25 federal income tax withholding statements with the department in the calendar year. Provides that any entity that submits incremental income tax withholdings, including a nonprofit organization, and that is a high growth company with new high skilled jobs, could qualify for the economic development for a growing economy tax credit if approved for the credit by the Indiana economic development corporation. Repeals the power of Indiana economic development corporation to grant the credit to a specified nonprofit organization. Suspends, for taxable years beginning in 2010 and 2011, the taking of the patent income exemption, teacher summer employment tax credit, enterprise zone loan interest credit, neighborhood assistance credit, maternity home tax credit, enterprise zone investment cost tax credit, community revitalization enhancement district tax credit, the tax credit for making available a health benefit plan, and the small employer qualified wellness program tax credit. (The “neighborhood assistance credit” is otherwise known as CREED and is what helped rehab the Cardinal Ritter House in New Albany.)
Now. . . for SB237.
A BILL FOR AN ACT concerning economic development.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: ; (10)SB0237.2.1. --> SECTION 1. [EFFECTIVE UPON PASSAGE] (a) The interim study committee on economic development is established to study the following:
(1) Best practices in state and local economic development policies and activities.
(2) The use and effectiveness of tax credits and deductions.
(3) Whether there are any specific sectors of the economy for which Indiana might have comparative advantages over other states.
(4) The extent to which Indiana's tax laws encourage business investment, and any improvements that might be made to Indiana's tax laws.
(5) The extent to which Indiana's education systems support economic development.
(6) Any other issue assigned to the committee by the legislative council or as directed by the committee's co-chairs.
In other words: let’s suspend (surely damage) our existing economic development programs THEN let us study the effects of these programs and their impact on brings/retaining business in the State of Indiana.
should be "bringing/retaining" business to the state of Indiana.
ReplyDeleteEconomic development and the competition for it, ends up being a zero-sum game the states play with each other. It's a race to the bottom. The same can be argued for tax abatements at the local level.
ReplyDeleteNaturally, the people who's incomes are derived from gov't positions relating to Economic Development will not be advocating this truth.
There is not a shred of science pointing to gov't officials knowing better than entrepeuners what the marketplace needs.
What I believe govt must do is create a fair arena, as much as possible, for free-markets to work. Plus they are the only entity capable of "knitting" together the infrastructure commerce needs and maintaining it so the free market can thrive. And let's not forget we decided as a country 100 years ago we should also use gov't to ensure everyone is educated and therefore capable of functioning in the free market system.
How did everything get upside down?
A recent poll Clere cited said most Hoosiers think gov't should focus on creating jobs!!!
NO! The gov't can only focus on keeping the country mobile, safe and minimally educated.
Is that why NA is a ghetto for it's 200th birthday? Gov't just quit taking responsibility for it's job and starting likening itself to a perpetual self-service employment system ostensibly for the purpose of creating jobs?!
What if we just tried to take about govt for one week without using the term "job creation". Or never talk about it again till the infrastructure, environment, public safety systems and schools are functional?