States Get Creative as Jobs Disappear

Even as tax revenues shrink, states pay to entice employers
By Jim O'Neill,  Newser User
Posted Feb 2, 2009 8:47 AM CST

(Newser) – State governments, reeling from diminished tax revenues that have forced cuts in services and, in some cases, jobs, increasingly are offering tax breaks and incentives to employers in an effort to stimulate the job market, reports the Wall Street Journal. “Now is not the time to back off the field of economic development,” said Missouri Gov. Jay Nixon.

But critics, like Colorado Rep. John Pommer, contend that catering to an employer’s whims isn’t a guarantee jobs will follow, and that even if they do, they may not make enough of a difference. “It seems like we’re always bowing to the god of economic development without stopping to think that he never answers our prayers,” Pommer said. (Read more job creation stories.)

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