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Vanderbilt Law Review

Authors

Everett H. Falk

First Page

159

Abstract

The increasing popularity of industrial development financing suggests that there are considerable benefits to be gained from the intelligent use of these plans. However, before a community commits itself to a particular industrial development project it should develop a clear concept of the direction in which the community is to move and it should seek to define its long-range economic objectives in the context of its ability to support industrial growth and its economic relation to other regions. The states themselves can, with professional assistance,undertake studies to define regional objectives; but statutory standards implemented by state agencies are necessary to provide a framework within which communities can plan to develop their economic potentials. Legislation should be drafted with care to insure against potential abuses and to prevent industrial development financing from becoming a means of securing artificial competitive advantages which tend to "pirate"industries from other regions. The federal government should consider revision of its tax laws to curtail abuses, while authorizing plans used for the legitimate purpose of intelligent economic stimulation. If the economic effects of industrial development financing are thoroughly evaluated by all interests concerned with a view toward achieving economic maturity in all sectors, then the original objectives of the programs--the promotion of the public welfare--may be realized.

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