Question

While the federal government has long given companies and individuals tax deductions or deferrals for economic development purposes, state and local governments have, since at least the 1980s, tried to attract new jobs and amenities through similar means. Professional sports teams, shopping center developers, manufacturers, and the film and television industries have all benefited from the provisions that many analysts call "tax expenditures" and supporters call "tax incentives."

Why could such measures be called either of the above?

Answer 1

Tax measures can be called 'tax expenditures' or 'tax incentives' because they involve providing tax breaks or exemptions to encourage economic development. They are used by state and local governments to attract industries and businesses and stimulate economic growth.

Step-by-step explanation:

The measures discussed in the question can be called either 'tax expenditures' or 'tax incentives' because they involve providing tax breaks or exemptions to companies and individuals to encourage economic development. Analysts refer to them as 'tax expenditures' because they represent a loss of government revenue, while supporters prefer to call them 'tax incentives' because they are intended to incentivize certain behaviors or investments. These measures are used by both state and local governments to attract industries and businesses, such as professional sports teams, shopping center developers, manufacturers, and the film and television industries, in order to stimulate economic growth and create jobs.