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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTax Incentives to Companies Bleeding Towns Dry, With Few Results
Interesting article, very interesting.
http://truth-out.org/news/item/13092-tax-incentives-to-companies-bleeding-towns-dry-with-few-results
In the end, the money that towns across America gave General Motors did not matter.
When the automaker released a list of factories it was closing during bankruptcy three years ago, communities that had considered themselves G.M.s business partners were among the targets.
For years, mayors and governors anxious about local jobs had agreed to G.M.s demands for cash rewards, free buildings, worker training and lucrative tax breaks. As late as 2007, the company was telling local officials that these sorts of incentives would further G.M.s strong relationship with them and be a win/win situation, according to town council notes from one Michigan community.
Yet at least 50 properties on the 2009 liquidation list were in towns and states that had awarded incentives, adding up to billions in taxpayer dollars, according to data compiled by The New York Times.
Some officials, desperate to keep G.M., offered more. Ohio was proposing a $56 million deal to save its Moraine plant, and Wisconsin, fighting for its Janesville factory, offered $153 million.
But their overtures were to no avail. G.M. walked away and, thanks to a federal bailout, is once again profitable. The towns have not been so fortunate, having spent scarce funds in exchange for thousands of jobs that no longer exist.
One township, Ypsilanti, Mich., is suing over the automakers departure. You cant just make these promises and throw them around like theyre spare change in the drawer, said Doug Winters, the townships attorney.
Yet across the country, companies have been doing just that. And the giveaways are adding up to a gigantic bill for taxpayers.
A Times investigation has examined and tallied thousands of local incentives granted nationwide and has found that states, counties and cities are giving up more than $80 billion each year to companies.
When the automaker released a list of factories it was closing during bankruptcy three years ago, communities that had considered themselves G.M.s business partners were among the targets.
For years, mayors and governors anxious about local jobs had agreed to G.M.s demands for cash rewards, free buildings, worker training and lucrative tax breaks. As late as 2007, the company was telling local officials that these sorts of incentives would further G.M.s strong relationship with them and be a win/win situation, according to town council notes from one Michigan community.
Yet at least 50 properties on the 2009 liquidation list were in towns and states that had awarded incentives, adding up to billions in taxpayer dollars, according to data compiled by The New York Times.
Some officials, desperate to keep G.M., offered more. Ohio was proposing a $56 million deal to save its Moraine plant, and Wisconsin, fighting for its Janesville factory, offered $153 million.
But their overtures were to no avail. G.M. walked away and, thanks to a federal bailout, is once again profitable. The towns have not been so fortunate, having spent scarce funds in exchange for thousands of jobs that no longer exist.
One township, Ypsilanti, Mich., is suing over the automakers departure. You cant just make these promises and throw them around like theyre spare change in the drawer, said Doug Winters, the townships attorney.
Yet across the country, companies have been doing just that. And the giveaways are adding up to a gigantic bill for taxpayers.
A Times investigation has examined and tallied thousands of local incentives granted nationwide and has found that states, counties and cities are giving up more than $80 billion each year to companies.
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Tax Incentives to Companies Bleeding Towns Dry, With Few Results (Original Post)
RKP5637
Dec 2012
OP
Response to RKP5637 (Original post)
AnotherMcIntosh This message was self-deleted by its author.
RKP5637
(67,112 posts)3. I'm sure if one dug into the money trail it could shed some quite interesting trails. n/t
GeorgeGist
(25,323 posts)2. Sounds like free stuff and moochers.
RKP5637
(67,112 posts)4. USA, Inc. Money first, people last. n/t