The Cabinet for Economic Development report the number of jobs that have been created because of tax incentives. Isn’t that a good thing?
The Cabinet typically reports the number of jobs promised by every company that receives tax breaks over the period being reported. But it’s important not to attribute all the new jobs to the tax incentives, because research suggests that there is little cause-and-effect relationship between tax incentives and corporate investment decisions. Companies most often make these decisions based on other factors, and tax breaks are just an extra bonus they gladly accept. Also, statewide job totals may mask important issues. Are jobs being created in parts of the state most in need of them? Are the jobs of good quality? On that note, the state has enacted wage floors for recipients of most economic development incentives that are a positive step towards limiting current incentives to better quality jobs. When looking at job reports, it’s important to note that the U. S. and Kentucky economy normally add jobs in most years as part of natural economic growth. That is how employment keeps up with
