The featured story in the latest edition of Carolina Journal focuses on the players involved in a possible state government takeover of Alcoa’s property along the Yadkin River. That Don Carrington article attracted attention this week from N.C. Property Rights Watch. Other state government issues are also attracting the John Locke Foundation’s attention. News 14 Carolina interviewed Vice President for Research Roy Cordato about the use of targeted tax breaks to lure businesses to North Carolina, while President John Hood discussed incentives in an article published in both the Gaston Gazette and Shelby Star. (John Hood,
president of the John Locke Foundation, an independent think tank, said
the federal government should step in on states treating companies
preferentially. In the absence of federal action, he still thinks the
state and local governments in North Carolina should still treat all
taxpayers fairly. “It’s understandable that North Carolina needs to be
competitive, but there are better ways to be competitive than carving
out exceptions for a single company,” Hood said, speaking on incentives
in general, not specifically the bill in question. “If our corporate tax
structure is uncompetitive, then we should cut the tax structure. We
don’t know that more jobs won’t be created by cutting the taxes for all
companies.” The problem with incentive deals, Hood said, is they are fundamentally based on the assumption that public officials know which
businesses will be successful. “There is no basis for assuming that a
company that creates jobs will be around in five years,” Hood said. “We
don’t really know. It’s a mistake to base fiscal policy around the
success of a particular company.” If it means a particular company goes
elsewhere, Hood said, then that’s what it means.) Hood also discussed with the Charlotte Observer the role Mecklenburg County Sen. Dan Clodfelter has played in addressing major issues this year, especially tax “reform.” (Hood also used a recent entry on National Review Online’s blog, “The Corner,” to highlight the potential harmful impact of smart-growth policies on housing choices.) Meanwhile, News & Observer columnist Rob Christensen mentioned the John Locke Foundation this week in an article comparing North Carolina to Sweden. The foundation’s Locker Room blog also attracted attention this week from WUNC Public Radio reporter Laura Leslie’s blog, “Isaac Hunter’s Tavern,” for a post involving a Republican legislative news conference.