Why cities provide tax breaks even when they are strapped for revenue
Type:
E-book, Lesson PlanDescription:
Like the state and federal government, local governments offer tax incentives to businesses to help solve economic and/or environmental problems. In this lesson students will explore the web sites of three different cities and determine what incentives are offered and what problems they are trying to solve. They will also be asked to determine if the benefits gained from the incentives offset the costs incurred.
Subjects:
- Social Studies > General
- Social Studies > Economics
Education Levels:
- Grade 9
- Grade 10
- Grade 11
- Grade 12
Keywords:
Communities and Cities - Cost/Benefit Analysis - Externalities - Incentive - Role of Government - TaxationLanguage:
EnglishAccess Privileges:
MembersLicense Deed:
Creative Commons Attribution Non-Commercial
STUDENTS WILL
- List tax incentives offered by state and local governments.
- Determine what economic problems governments are trying to solve by offering incentives.
- Evaluate the costs and benefits of the incentives.
INTRODUCTION
If a city or state officials are in need of more tax dollars to maintain their budget, why would they offer tax breaks to businesses when these breaks will reduce their annual revenue? In this lesson you will explore the tax incentives available for business relocation and/or expansion in three different cities. You will then determine what each city would like to get from businesses in return for the incentives offered.
For the complete lesson, go to Why cities provide tax breaks even when they are strapped for revenue on EconEdLink.
