Cincinnati: Time to Push Back on Tax Incentives?

by: Michael Jones

Publication Date: November 22, 2019
Length: 16 pages
Product ID#: 2-353-143

Core Disciplines: Accounting/Finance, Economics, Strategy & Management

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Description

A rocky history existed between Cincinnati’s City Council and the city administration regarding economic development incentives, with controversies highlighted by news coverage. Council members requested clearer and more stringent rules and standards be in place before voting on individual development incentives. This was the context surrounding a council voting deadline for a particular property tax abatement proposal that appeared to contain inaccurate revenue projections. Council member Kevin Flynn, who was on the council’s Budget and Finance Committee, faced voting decisions he knew would be important.

Teaching Objectives

After reading and discussing the material, students should:

  • Understand the positive externalities associated with tax incentives.
  • Assess the financial impact of tax incentives on government tax receipts.
  • Calculate the return-on-investment for tax incentives.
  • Describe agglomeration effects.