Quite simply, because it pays off. Workers get better wages, the economy thrives, businesses locate here.
Yes, all that makes sense and we hear it all the time. Now, there’s some pretty clear evidence that having a well-educated workforce is more important than low taxes when it comes to improving a state’s economic outlook. In fact, according to the Economic Policy Institute, there is NO correlation between a state’s tax rate and it’s relative prosperity.
On the other hand, look at this graph and note where TN stands — on the low end in terms of both number of residents with a college degree and median wages.
So, while offering all kinds of tax breaks seems to be the trend when it comes to Tennessee cities and the state government luring business to our state, we’d be better off in the long term to ramp up or investment in and support of public education.
Perhaps along the lines of this proposal.