California tax incentive’s success is in its failures
- August 17, 2021
- David Neumark, economics, Bloomberg Tax, Aug. 17, 2021
California's experiment in creating an accountable and transparent business income tax credit to reward companies for job creation and capital investment seems to be working, even though half the companies winning the credit aren't able to keep their promises. ... The recapture rate so far shows the program has teeth, and that's an unambiguously good thing, said David Neumark, [Distinguished] professor of economics at University of California Irvine and co-director of its Center for Population, Inequality, and Policy. "It doesn't mean no jobs are being created, it just means they're falling short of their goals," he said.
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