Not satisfied with the amount of political favoritism promoted in North Carolina’s tax code and budget, some legislators yesterday held a press conference to announce their desire to see more centralized direction of the state’s economy.
House Democrats on Tuesday called for a renewed commitment to providing incentives to businesses to bring jobs to North Carolina.
Rep. Rodney Moore, D-Mecklenburg, recited a litany of incentives and tax breaks that have been eliminated by the Republican-led General Assembly in recent years or are set to expire this year, including tax credits for research and development, redeveloping historic buildings, film and television productions and renewable energy production. Other incentives, such as the Job Development Investment Grant program, are underfunded, he said.
One question that will not go answered, however, is this: if tax credits are so effective at stimulating investment and job growth in the targeted areas, why not extend the same treatment to all businesses and industries? Why play favorites?
The answer, of course, is that politicians believe that it is their place to impose their plans and preferences to direct the state’s economy. And showing that they are willing to provide political advantages to some businesses or industries while denying them to others is a great source of power for politicians. Showing a willingness to play favorites encourages special interest groups to invest in lobbying for such favoritism, and is a great means by which to raise campaign funds.
Make no mistake, dispensing political advantages to a select group of businesses and industries is not about creating jobs or improving the economy; it is all about centralizing power, cronyism and fattening the campaign coffers of the ruling class.
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