Fiscal benefits are spread among government, but the government benefiting the most may not be able to provide subsidization
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- From Transforming or Reforming Capitalism - Chapter 3 - Lamb "Towards an Economic Theory of Community Economic Development": The net fiscal impact, designed for government and politicians, is calculated by taking the difference between additional tax revenues and net changes in government expenditures. Local governments can justify subsidization up to the level of of a positive fiscal impact. Multipliers result in increased benefits, due to lower production costs, compared to units subdidized in isolation. An issue is that fiscal benefits are spread among government, but the government benefiting the most may not be able to provide subsidization.