In most cases, corporate tax incentives left states in worse financial condition than they were to begin with; that’s the finding of a study published recently by the journal Public Administration Review.
The study looked at the relationship between financial incentives and the fiscal health of 32 states, including Connecticut. Bruce McDonald, who is one of the authors, says the peer-reviewed study examined how incentives have influenced the financial condition of the government and its ability to keep providing services.
While the study was published before Connecticut passed legislation providing long-term tax breaks to data centers, those types of tax incentives were part of the research.
