States and localities should carefully evaluate the effectiveness of the incentives they offer to attract or retain businesses.
When considering bond financing, state and local policymakers should:
Due to their regressive nature, raising state and local sales taxes should not be the first choice for increasing tax revenues.
States and localities should include services in the taxable base to reduce regressivity and improve neutrality.
Exemptions from state retail sales taxes should be narrowly designed to reduce their regressive nature and avoid
Policymakers should adopt minimum service standards and consumer protections to ensure fair terms and conditions.
Policymakers should ensure network reliability and resiliency for utility and telecommunications services.
Policymakers should establish a definition of “universal service” for the energy industry that is similar to the one in the Telecommunications Act of 1996.
Regulators and lawmakers should ensure that consumers with low incomes can afford their utilities. This includes telecommunications, energy, and water.