The District 12 seat in the Iowa House of Representatives was one of only three contested races that had candidates at last night’s (Wednesday) Carroll Chamber of Commerce Candidate Forum. One of the questions posed to the candidates, Republican incumbent, Brian Best, and Democrat, Peter Leo, was the appropriateness and effectiveness of using tax credits to encourage businesses to move to the state. Leo indicated that the credits can encourage companies to make the move, but he notes they also look at a lot more than just taxes when making the decision.
He says that money would be better spent investing in people rather than companies.
Best calls tax incentives an essential, but inefficient, method of stimulating economic growth. He compared them to “kicking a dead horse.”
According to Best, the deals may not always seem favorable initially, but it is important that the long-term benefits are considered. Without the incentives, he says the state could discourage companies interested in moving from coming to Iowa.
Apple, Facebook and Microsoft have also constructed data centers in the state over the last decade, and Best credits tax incentives for making that a reality. Carroll Broadcasting you bring more from Wednesday’s Chamber of Commerce Forum in upcoming broadcasts.
