14 News, The Tri-State's News and Weather Leader-Tax incentives could help bring back jobs

Tax incentives could help bring back jobs

By Laura Forbes - bio | email | Twitter
Posted by Jill Lyman - email

EVANSVILLE, IN (WFIE) - Despite talk the economy is recovering, jobs continue to leave the Tri State, with more than 100 people losing their job at Bristol Myers by the end of the year.

Could a tax incentive for employers help? One business professor says, yes.  

"Businesses have learned to be very lean in their operations, and that means not returning employers to the workforce until they are absolutely convinced the economy is turning around," said UE Business Professor Bob Clark. 

That's why some talk of another stimulus bill has turned to the possibility of a tax credit for employers who create jobs.

Clark says targeted tax credits have already worked to create jobs, and in the case of Whirlpool, save some of them.

"Maintaining 300 professional jobs at Whirlpool required a commitment to tax policies," said Clark. 

"Mead Johnson, Berry Plastics, if you go to Warrick County, Alcoa, all received tax credits, and in my mind it was a positive way to create a competitive environment for employers," said Clark. 

He says that could be a model for attracting jobs, and a broader tax incentive could create them on a larger scale.

"I think those types of incentives may tip the scale of employers who are hesitant to move forward," said Clark. 

Clark says the Tri State area has diverse businesses. So while it still may take time for jobs to recover, he believes it will happen faster here than most of the country.

Clark says job creation is crucial to getting out of a recession, because consumer spending is what really drives the economy.

©2009 WFIE. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.