Joseph H. Haslag

Joseph H. Haslag
Lower tax rates are more efficient than tax credit
11:00 pm
Sat May 3, 2008

Lower tax rates are more efficient than tax credits

Tax credits are a hot topic in the Missouri Legislature. Fans of these instruments assert that tax credits are necessary for Missouri to compete with other states and to signal that we are “open for business.” Such devotion to helping the state grow is admirable. Fans, however, are not experts and a careful review of the evidence and some basic economics helps us understand why these herculean efforts are misguided. When asked whether Missouri can stay open for business while avoiding the pitfalls of the tax credit, the answer is unambiguously yes.

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