By D. Schultz
American Politics within the Age of Ignoranc e appears to be like at ten coverage myths and undesirable principles that governments and public officers - typically conservatives - constantly repeat and re-enact. performing on those myths, the guidelines necessarily fail and thereby make stronger preconceived ideals that executive is useless at fixing difficulties.
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Extra resources for American Politics in the Age of Ignorance: Why Lawmakers Choose Belief over Research
When pressed, businesses will actually admit to this in public. For example, nearly 62% of those interviewed in a California study on hiring tax credits indicated that they had never or rarely affected their decision to hire individuals (California Budget Project 2006). In the same study, nearly half of those interviewed stated that tax incentives for relocation did not affect their decisions (California Budget Project 2006; Hissong 2003). Overall, the economic development literature states that tax incentives and levels of taxation are not major determinants of relocation, but instead might have some marginal influence when there is some tax elasticity and where the incidence is significant compared to other contiguous jurisdictions.
While elegant in theory, how have enterprise zones really worked? Bottom line: They are generally a cost ineffective failure in encouraging economic development and in producing meaningful employment opportunities. As summarized by Peters and Fischer: Enterprise zone incentive programs do not seem to provide enough benefit to firms to materially alter their investment and locational habits; as a result, they do not induce much, if any new growth. Moreover, although enterprise zones are justified by politicians and academics alike as helping economically disadvantaged areas, zones do not appear to provide much in the way of employment opportunities to zone inhabitants.
Taxes and business location decisions Perhaps at the top of any list of political myths is the idea that taxes, including their incidences and incentives, are serious factors affecting business relocation decisions (Snell 1998). At the core of this belief is the idea that businesses make decisions about where to locate a facility based primarily, or perhaps even exclusively, upon taxes. As a result of this belief, state and local governments have engaged in dramatic tax wars against one another in order to lure businesses to their community.