Economic Development Through Tax Incentives

April 8, 2011

Often, us in the Washington state economic development world mention the challenges that we have in not being able to engage in traditional economic development incentives. Because of our state constitution, we can’t do a lot of the direct financial offerings to companies that other states do, as it violates our “lending of credit” provision.

But this article in the trusty New York Times points out that using incentives to lure companies across state borders can be a tough way to do economic development“:

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It’s the Most Wonderful Time Of the Year (in Ideas): Big Ideas of 2010

December 15, 2010

I can’t wait for this Sunday. It’s literally my favorite day of the year. Why? Because the New York Times Magazine’s Year in Ideas issue is going to arrive at my doorstep! (I know, that’s a very nerdy reason for a day to be one’s favorite, but what can I say…I love ideas!) The NYT issue is apparently the 10th annual, but it also serves another important annual role: inspiring the creation of the Prosperity Blog’s 2nd annual “Big Ideas” post!

To quote from last year’s, we here at the Prosperity Blog have also had a good year of ideas, generating all sorts of practical proposals for improving our region’s business climate and competitiveness. But, of course, we have also had lots of impractical, sky’s-the-limit ideas that we hope someone is going to take and run with and make all our dreams come true. So, for all you good-idea-awaiting folks out there, here’s a summary…presented in Top Ten format:

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Getting Around “Lending of Credit”

November 12, 2010

Every economic development blog in the state of Washington has, at some point, railed against the “lending of credit” provision in the state’s constitution. Which is actually a pretty good pun, considering the lending of credit provision was put in as a backlash against “greedy” railroad barons. Zinger! Anyway, you know what I’m talking about: the prohibition against direct investment of public funds into private enterprises. Which is a big deal around the country in economic development, where cities and states will throw money at a company to get it to move there. Sometimes that works out, sometimes it’s money that they don’t quite have.

A lot of folks in the state talk about making a run at a constitutional amendment, but I’ve never seen anyone actually make a go of it. Not that there’s a lot of money in the state government to lend to private companies anyway. But there are actually some interesting approaches that get around that prohibition going on these days. Read the rest of this entry »

Where’s the Full Frontal Assault on Economic Development Barriers?

November 13, 2009

About  a year ago, there was a lot of talk about “let’s see this recession as an opportunity!”  And, as much of a hackneyed phrase as that is, it does make some sense. When the going gets tough, the best take advantage of it to increase their market share. 

When you’re a business, that’s about using cash reserves to purchase undervalued assets.  When you’re a government, that can mean using a crisis to change policies that have long been viewed as less friendly to economic development but were always politically untouchable during better times.  Some people might say that the recent Seattle head tax repeal was just such an example. But why haven’t I heard anyone talking about taking down one of the Big Washington Economic Development Barriers? Read the rest of this entry »