Peoria Public Radio Staff
Wed October 16, 2013
Some economists oppose tax incentive package for ADM
University of Illinois Economist Fred Giertz says one problem with the 24-million dollars in tax breaks that Illinois lawmakers may take up soon is that no one knows exactly what company leaders are seeking, outside of easy airport access. And Giertz says some don’t approve of the possible tax credit package:
“Economists are not particularly fond of these kinds of ad-hoc inducements. Most economists say the best thing is to have a stable tax system and provide the necessary public services. Highways and communications and education, things of that sort and let the firms decide on their own. But there’s a strong political need to try and attract these firms, something that comes up time and time again.”
And Giertz notes keeping ADM headquarters in Illinois won’t have any real impact on the state’s unemployment rate of 9-percent. More than 4-thousand employees will remain in Decatur after the move.