Tax credits for angel investment are now part of the economic strategy of almost half the states. And many more are actively considering this tax strategy. I have never been much of a fan of this strategy. My concerns are certainly grounded in my philosophy that markets work best when left mostly to themselves. Entrepreneurs and their customers are much better at figuring out promising new businesses and industries than politicians and bureaucrats.

But there is also a more pragmatic reason that I oppose angel investment tax credits – they just do not deliver what is promised in terms of economic growth and job creation.

I was asked to argue my side of the case on angel investment tax credits in an article I wrote for the Wall Street Journal this week. You can see the debate here.