Phase Out Corporate Giveaways Interstate Compact
The Phase Out Corporate Giveaways Interstate Compact is a proposed interstate compact in the United States that would commit signatory states to ending the economic development practice of providing targeted subsidies, tax abatements and other forms of financial incentives to private companies. It is frequently formally referred to as the "Agreement for Best Practices in Economic Development" in legislation.[1]
As of November 2021, 15 states had bills before their legislatures that would bind them to the Compact's requirement not to offer subsidies to businesses located in other signatory states, and three other states had had such legislation introduced in previous sessions.[2][3]
Versions of the Compact have been proposed by think tanks associated with free-market economic policies such as the Mercatus Center at George Mason University and the Mackinac Center for Public Policy.[4][5] However, support for the Compact has been broadly bipartisan, with left-wing think tanks such as the American Economic Liberties Project also supporting the Compact and both Republican and Democratic legislators sponsoring bills to join the Compact in their states.[6][7][8]
Legislators' statements and media reports generally suggest that interest in an interstate compact to end economic development "corporate welfare" was accelerated by the controversy surrounding the Amazon HQ2 bid process, by the subsidies given to Foxconn in Wisconsin and by a growing body of academic research questioning the effectiveness of such programs at creating jobs.[9][10][11]
| State | Most Recent Session | Bill Number(s) |
|---|---|---|
| Alabama | 2021 | HB367 |
| Arizona | 2021 | SB1701 |
| Connecticut | 2021 | HB6176 |
| Delaware | 2021 | HB10 |
| Florida | 2021 | HB983 |
| Hawaii | 2021 | SB359 SB531 HB16 |
| Illinois | 2021 | HB95 HB145 SB 674 |
| Iowa | 2021 | HF598 |
| Maryland | 2020 | HB525 |
| Massachusetts | 2021 | HD4009 |
| Michigan | 2021 | HB4971 SB524 |
| Missouri | 2019 | HCR48 |
| New Hampshire | 2020 | HB1132 |
| New York | 2021 | A3718 |
| Pennsylvania | 2021 | HB 873 |
| Rhode Island | 2021 | S46 H5316 |
| Utah | 2021 | SB190 |
| West Virginia | 2021 | SB95 |
References
[edit]- ^ "An act relating to the agreement for best practices in economic development". MyFloridaHouse.gov. Florida House of Representatives. 2021. Retrieved 2021-02-24.
- ^ Bologna, Michael (2021-02-22). "Eleven States File Bills to Curtail Tax Incentive Poaching". Bloomberg Tax. Bloomberg. Retrieved 2021-02-24.
- ^ "Coalition to Phase Out Corporate Tax Giveaways". Retrieved 2021-02-24.
- ^ Farren, Michael; Mitchell, Matthew (2020-07-23). "An Interstate Compact to End the Economic Development Subsidy Arms Race". Mercatus Center.
- ^ Schlomach, Byron; Slivinski, Stephen; Hohman, James (2019-03-27). "Multilateral Disarmament: A State Compact to End Corporate Welfare". Mackinac Center for Public Policy.
- ^ Fitzpatrick, Edward (2021-02-10). "Unlikely duo back bill to curb 'corporate welfare'". The Boston Globe. Retrieved 2021-02-24.
- ^ "Economic Liberties Applauds Interstate Compact to End Tax Giveaways for Big Corps" (Press release). American Economic Liberties Project. 2021-02-22. Retrieved 2021-02-24.
- ^ Davis, Aaron (2020-03-09). "States Push for Cooperation Over Competition". TaxNotes. Retrieved 2021-02-24.
- ^ Fischler, Jacob (2019-02-20). "State lawmakers seek ban on Amazon-like incentives". Roll Call. Retrieved 2021-02-24.
- ^ Holder, Sarah (2019-09-09). "After Amazon's HQ2 Retreat, New York State Lawmakers Target 'Corporate Welfare'". Bloomberg CityLab. Bloomberg. Retrieved 2021-02-24.
- ^ "Research & Resources". Center for Economic Accountability. Retrieved 2021-02-24.