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Better To Abolish Business Taxes Than Waive Them As Iowa Has Done For Apple's Data Centre

Source: forbes.com - Aug 25, 2017

It terms of economics, rather than politics, the idea of a locality waiving business taxes in order to attract a particular business is a very bad idea indeed. It would actually be better for that same locality simply to abolish business taxes for everyone and see the subsequent growth. Sure, that means that some other people are going to be taxed instead of business but then economics tells us that business doesn't pay taxes anyway, only real live humans do in the first place.

Think it through for a moment. Iowa has waived some number of taxes in order to persuade Apple to place its new data centre there. OK, the flip side of that is obviously that those taxes are regarded as a cost, as making it less likely that a business will set up in Iowa. So, why not abolish all such taxes and see how many businesses do set up?

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Category: General Business