Just like the US Congress, a new report shows that American Governors are pursuing a policy of socialized entrepreneurship by establishing programs to try and pick winning industries and market sectors to support with targeted tax breaks and subsidies. From the National Dialogue on Entrepreneurship:
A diverse set of program offerings can be expected from fifty different states, but a couple of key themes do emerge. Most of the new initiatives focus on supporting "clusters of innovation," i.e., "fast growing groups of businesses that share markets, labor, new ideas and products." Because of an improving economy, governors have had more funds to invest in economic development. Tax revenues were up in every state, and forty-five states increased expenditures in 2005.
Some of the guvs' favorite approaches include initiatives such as efforts to create state entrepreneurship centers and providing tax credits to angel investors.
Here's my plan. View all that extra tax revenue as a problem and not an opportunity. It means we are over-taxed. Cut taxes and simplify regulations and we will see sustainable long-term entrepreneurial economic growth.
