Reader comments
Tax credits considered for funding incentives

Why are we providing tax incentives to companies to move to Utah when current employers already can't find the workers they need? Aren't we subsidizing outside employers at the expense of firms that are already here? Isn't there a better use of our tax dollars--like education?

AT some point you have to realize there is no such thing as a free lunch (except at the State Capital). What you give away in the form of rebates or tax credits (either way) generates requirements for more services (schools adinfinitum) and fewer tax dollars to cover them. The only people taxed are people. And the "people" of this State are tapped out. They can not afford any more tax burdens generated by economic well wishers or pie in the sky schemes.

With all due respect to the Legislature's fiscal analyst, I think they are giving bad advice to the Legislature on this one. While they are correct that the incentives will come from the general fund, the incentives are designed so that they are a fraction of the amount the companies will be paying in taxes. As a result, the revenue to pay for the incentives will already be there and it's revenue that wouldn't have been there anyway if the companies hadn't been attracted to the State. My only concern would be to make sure the impact model used to determine the incentives is accurate. In other words, are the companies actually generating the taxes anticipated by the fiscal impact model when the incentive was awarded. As long as the model is accurate, the legislature comes out way ahead.

Seems like the article said that the state refunds portions of the corporate and PERSONAL income taxes. This is one of the reasons the state requires them to report the number of employees (and the total salaries paid) because the company gets some of the personal income taxes paid by the new employees. So by doing a tax credit the money can come from the income tax bucket which doesn't go into the general fund.

I agree with Jane, If we stop business moving into our state and allocate the money into education instead of incentives than we will have one of the most highly educated workforces all on unemployment. and our children will be able to see other parts of this country and the world to seek employment. thats thinking to the future.....