Economic Liberties Releases New Quick Take on Interstate Compact to End Corporate Tax Giveaways

April 26, 2021 Press Release

Washington, D.C. — The American Economic Liberties Project today released “What You Need to Know About the Interstate Compact Against Corporate Tax Giveaways,” a new quick take that comes on the heels of 13 states across the U.S. introducing legislation to form an interstate compact to end corporate tax giveaways.

Authored by Director of State & Local Policy, Pat Garofalo, the quick take explains how the interstate compact would end the use of company-specific tax incentives to entice corporations to move from one location to another, while also illustrating how these subsidies harm communities and why state legislators must end this race to the bottom.

“The interstate compact is a critical first step in liberating communities from the endless cycle corporate subsidies that extract wealth and inhibit real economic gains,” said Pat Garofalo, Director of State and Local Policy at Economic Liberties. “Research has shown that corporate tax incentives have a negligible effect on economic growth, job creation, or incomes. It’s encouraging to see 13 state legislatures introduce bills to end these corporate subsidies, and we look forward to additional states coming on board.”

As the quick take explains, the interstate compact aims to fix the prisoner’s dilemma of state economic development: State lawmakers feel compelled to offer tax incentives and other giveaways to large corporations because every other state does it. By instituting a cease-fire amongst the states, the compact can foster the development of more impactful, equitable, and cost-effective economic policies that focus on small businesses and the real needs of communities.

To date, Alabama, Arizona, Connecticut, Delaware, Florida, Hawaii, Illinois, Massachusetts, New York, Pennsylvania, Rhode Island, Utah and West Virginia have formally announced legislation to form and join the compact.

Read “What You Need to Know About the Interstate Compact Against Corporate Tax Giveawayshere.

Learn more about Economic Liberties here.


The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.