10/23/2025
https://tribtown.com/2025/10/22/michael-hicks-iedc-mess-is-bigger-than-one-audit/
"Indiana now has among the lowest business taxes in the country — a policy decision that is likely to endanger much of the spending that attracts people to our cities and towns. This would be an ideal time to do away with tax incentives.
Local governments can no longer afford to abate business taxes or undertake large spending efforts for new businesses. At the same time, it is clear state government — or the IEDC, at least — cannot manage these programs without running afoul of basic ethical standards.
Tax incentives are among the most studied public finance tools in the world. The most optimistic assessment of their value is that in a really high tax environment, about three-quarters of businesses receiving abatements would’ve relocated to their new site and made similar investments anyway."
Editor’s note: Michael J. Hicks is the director of the Center for Business and Economic Research and an associate professor of economics in the Miller College of Business at Ball State University. Citations for this column are available at commentaries.cberdata.org/. The Indiana Economic Developme...