Question

Many state and local governments offer various incentives to retain or encourage companies to stay or relocate to their jurisdiction. ( Amazon, Google). Recently , taxpayer groups and certain government officials have questioned the benefits and costs of the incentive programs. Do you believe the incentive programs ,in general, are beneficial. Why or Why not?

Answer 1

Yes, as a cost accountant i believe in this incentive programs given by government to sucb multinational companies. As the day to day requirements of people or local people are increasing, so the government should provide them such other incentives or compensatory services which will automatically promote business to them. If these company grow frequently, then these might give an opportunity to increase GDP as it might lead to increase in employment generation, per capita income, reduce inflation and such other postivities. These benefits should be compared with the opportunity cost of other investments or companies. If we find the inventive given are less effective than what these companies are serving then it should immediately be stopped or reduced and vice versa.