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State and Local Government / Transparency

Fake Markets in Everything

By Audrey Spalding on Dec 3, 2010

We already know that tax credits and other targeted tax incentives encourage all sorts of strange economic behavior. In recent cases, easily accessible government money has motivated individuals to fill out onerous forms, steadily increase the weight of their cattle, buy yachts in certain states, continue to produce cars in Michigan, and even film movies in Missouri.

But did you know that there is an entire journal devoted to explaining what tax credits are and how to get them? And, yes, you can subscribe to the print version.

The existence of this journal makes sense. After all, if governments are giving away relatively easy-to-obtain public money, we would expect businesses to crop up in order to make a profit by helping others access taxpayer money. This journal, and all the other companies and websites dedicated to encouraging others to apply for public tax incentives are illustrative of the strange activity that is a byproduct of government-manufactured incentives.

(special thanks to Christine Harbin for suggesting that I shamelessly copy Tyler Cowen.)

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Audrey Spalding

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