Playing games with abatements, credits, and other incentives, and then claiming it will increase future revenue, does not guarantee anything except a larger bill for some unlucky taxpayers.
Des Moines wants to increase the city's tax base by eliminating taxes on certain types of property.
Just as with tax credits, this shifts the tax burden to a smaller group of taxpayers and allows bureaucrats to choose winners and losers by handing out exemptions to some while turning up rates on others.
The ideal tax policy should:
- Lower rates for everyone; and
- Broaden the base
Playing games with abatements, credits, and other incentives, and then claiming it will increase future revenue, does not guarantee anything except a larger bill for some unlucky taxpayers. A well-structured and predictable tax system with low rates for everyone is a better incentive for economic and neighborhood growth.
