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Analysis: Tax credits don’t always create jobs

Cree CEO Chuck Swoboda (from left), Wisconsin Gov. Scott Walker and Chris Ruud, the president of Ruud Lighting, talk during a groundbreaking ceremony at a Ruud Lighting plant in Sturtevant on Nov. 15. As many as 40 percent of Wisconsin businesses that completed tax-credit programs tied to job creation failed to hire as many people as they expected. (AP Photo/Journal Times, Gregory Shaver)

WAUSAU, Wis. (AP) — A newspaper analysis raises questions about how effective tax credits are in prompting Wisconsin businesses to hire.

Gannett Wisconsin Media examined state data over the past five years. It found that 40 percent of Wisconsin businesses that completed tax-credit programs tied to job creation failed to hire as many people as they expected.

A Wausau Daily Herald report says 9 of 15 businesses in that period met the hiring goal. And of the 191 other businesses still active in the program, just 8 percent created the required number of jobs to earn the credits.

Governor spokesman Cullen Werwie said government can’t directly make jobs, but it can improve the environment for businesses to grow and invest.

Some business owners say hiring decisions depend on more than short-term tax benefits.

Information from: Wausau Daily Herald, http://www.wausaudailyherald.com

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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