What do the experts say?
"...experience suggests that governments incur considerable losses in tax revenues from tax-related employment programs without certainty over how many new jobs will be created or how much related social expenditures will be reduced." [1996 Canadian Department of Finance study]
"Recent research on government sponsored business incentives has revealed little, if any, correlation between government-sponsored business incentives and county unemployment rates." [2007 Ohio study]
"...a company's decision whether to invest in a particular region has more to do with factors other than tax incentives." [2003 Canadian Parliament study]
In the US, almost all the new jobs are created by a handful of "high-impact" companies. Only 2-3% of all firms fulfill the high-impact criteria (extraordinary revenue growth plus expanding employment). [2008 US Small Business Administration study]
Please consider this audacious proposition: Companies do not hire people because they will get a tax break. They hire people because the business is growing and demands more productive capacity.
Market, Magic, Mentors, Moxie. It's all about the fundamentals! Create an outstanding response to a compelling need and you will create jobs - period. If somebody offers you an employment tax credit, accept it politely and spend the money on product improvement.
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