Re: CA tax initiative

[Doug Henwood <dhenwood@xxxxxxxxx>]

This is slightly off the mark, perhaps, but an extensive review of almost
50 years of studies by Roger Wilson done in 1989 for the Council of State
Governments, shows that economic development incentives have a relatively
minor effect on business location decisions, well behind market access,
quality of life, labor force, etc., considerations. It cites several
studies showing taxes in general are much less important than business
lobbyists would have you believe.

The full cite: Roger Wilson, "State Business Incentives and Economic
Growth: Are They Efective? A Review of the Literature," Economic
Development in the States No. 1 (Washington?: The Council of State
Governments, 1989).

Doug

Doug Henwood [dhenwood@xxxxxxxxx]
Left Business Observer
212-874-4020


On Sat, 1 Jan 1994, Jim Devine wrote:

> happy new year!! A friend asks me to ask pen-l the following questions:
>
> Leftists, laborites, and liberals are currently pushing a state-wide
> initiative in California that will raise taxes on the rich and/or the
> corporations.  One of the backers in the SEIU, a biggie in CA.  SO:
>
> has anyone done any research on the response that capitalists will
> pursue to such an initiative, if passed?  will they leave, or are
> they just threatening to do so in order to influence the outcome?
> are they able to leave in sufficient droves to ahve an impact?
> will they be attracted to stay in CA if the money is to be spent on
> such things as infrastructure and education?  In general, what will
> the initiative's impact be?
>
> I would also appreciate some details on what the initiative is
> proposing.  Someone must know.  Nathan?  Anders?
>
> in pen-l solidarity,
>
> Jim Devine   BITNET: jndf@lmuacad.   INTERNET: jdevine@xxxxxxxxxxxxxxx
> Econ. Dept., Loyola Marymount Univ., Los Angeles, CA 90045-2699 USA
> 310/338-2948 (off); 310/202-6546 (hm); FAX: 310/338-1950