Reply #8: Extremely poor journalism

[joeglow3]

Does anyone have a link to a technical discussion of this?

On the surface, here is what I would guess is going on: Most states offer tax credits for investments in their state (both capital investments and job creation) - here in Nebraska, it is LB312. However, there is currently a beginning of a trend of states lowering their tax rates and just doing away with all the credits, as it can be difficult, from an administrative standpoint (i.e. Michigan). Clearly, the employee will file their Illinois personal income tax return and get full credit for their withholdings. I am guessing that instead of the state paying the costs to collect all the taxes and then turning right around and incurring costs to pay the money back as credits, they are simply allowing the company to keep the money and reduce they credits owed to them.

Now, there is a clear overriding issue of this blatant corporate welfare. However, I am guessing this is someone trying to sell us on something that is not as bad as we are led to believe, when the issue should be what it has always been - traditional investment credits.

Now, if this is what he is presenting it as, it is a big deal.