Tag: tax incentives

Supply-Side Economics from the Founder of the Brookings Institution

“Within limits, the system of progressive taxation is defensible and effective.  Beyond a certain point, however, it dulls incentives, and may destroy the principal source of funds for new enterprises involving exceptional risks.”

–Harold G. Moulton (founder of the Brookings Instituion), Controlling Factors in Economic Development, The Brookings Institution, 1949, p. 292.

DC Shouldn’t Subsidize Parking Garages

The District of Columbia is providing tax incentives for a parking garage at a new Harris Teeter grocery store.  This follows a District subsidized parking garage boondoggle that opened at a Columbia Heights mall in 2008.  Whether it’s a parking garage, bike rack, or any other commercial transportation activity, government should remain neutral. If Harris Teeter believes a 150-car parking garage is in the best interests of the company’s bottom line, it should pay for it itself. Taxpayers shouldn’t be on the hook.  If the District or any other city wants to encourage economic development, it should seek lower taxes across the board, and remove costly regulatory barriers.

H/T Chris Moody