Should the U.S. opt for a VAT-like tax, however, it shifts the tax paradigm to the federal level. The emerging digital economy is also making the notion of place less relevant. Local government competition for business development through the use of tax incentives and grants will become increasingly irrelevant as place, in terms of large physical buildings, loses its importance to knowledge-based industries, Honey said. What will become important is investment in place as far as quality of life is concerned. Those local governments that invest in schools, parks, and quality transportation will succeed.
Honey is also concerned about cities' slow response to globalization.
America's local governments are falling behind the rest of the world, Honey warned. Most major cities in Europe in Japan have some kind of international affairs office to nurture the needs of global companies, large and small. In the United States, such an office hardly exists at the local level. Job Site Public and private sector opportunities await you. Browse or post.