1. Curtailing the Subsidy War Within the United States
- Author:
- Edward Alden and Rebecca Strauss
- Publication Date:
- 05-2014
- Content Type:
- Policy Brief
- Institution:
- Council on Foreign Relations
- Abstract:
- Each year, U.S. state and local governments spend tens of billions of dollars to lure or retain business investment. The subsidies waste scarce taxpayer dollars that could better be used to strengthen public services such as education and infrastructure, or to lower overall tax burdens to create a more favorable investment climate. No state wants to dole out such subsidies, but most fear losing jobs to competing states if they refuse. States should take steps to curb subsidies, beginning with greater disclosure and cost-benefit analyses, and building up to a multistate agreement that creates strong disincentives for continuing subsidies. Existing international arrangements provide models and tools for achieving this.
- Topic:
- Economics, International Trade and Finance, Governance, and Reform
- Political Geography:
- United States and North America