“Conservative” Utah’s Centrally Planned Economy

“Conservative” Utah’s Centrally Planned Economy

– When you hear central planning, what kind of government do you think of? Stalin’s Russia, Castro’s
Cuba, Mao’s China? To a small degree, we have to
think of conservative Utah, where the Governor’s Office
of Economic Development, or GOED uses tax credits to incentivize out-of-state companies to relocate to Utah or incentivize existing
companies to hire more Utahns. Sounds okay, right? After all, why wouldn’t we want our state’s economy to succeed? GOED entices companies with tax credits. Those that create jobs in Utah are allowed to pay less taxes. But think of the companies that
aren’t on GOED’s short list, the ones that have to compete
with the larger companies that are able to secure
a lower tax burden. These companies pay more taxes and therefore can’t pay
their employees as much or offer their products and services for less than the GOED
favored competitors. Fundamentally, it’s
unfair to make homegrown Utah businesses subsidize
their competition. You would hate it, and so would I. It’s wrong and it’s not the
proper role of government to use tax policy to
pick winners and losers. Those who try to centrally
plan Utah’s economy argue that GOED’s manipulation is the reason behind Utah’s economic success. In a recent legislative
committee meeting, though, when GOED representatives
were asked to provide data justifying their claims, they could not. Businesses come to Utah for many reasons. Our educated workforce,
the beautiful outdoors, low costs of living, and much more. Centrally planning the
economy by handing out perks may help, but it’s not necessary. Prosperity comes from a free market, not an unfair advantage. What Utah’s economy needs
is a broad base tax cut benefiting the many, not the few. For Libertas Institute,
I’m Nichelle Aiden.

3 Comments on "“Conservative” Utah’s Centrally Planned Economy"

  1. I agree. Planning shouldn't be done by tax credits.

    It should be done by overthrowing the law of value with the law of planning, organizing resources and labor to best serve the needs of society's plan, and appropriating all bourgeois private property to suit that plan.

    That aside-read your economic history. Only the countries with the most intrusive states developed into modern economies. This is why the U.S., U.K., France and Germany developed. I'd like to argue about the point you made about prosperity resulting from a free market, except there's never been one so we don't know what the results would be.


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