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RKP5637

(67,112 posts)
Sun Dec 2, 2012, 05:50 PM Dec 2012

Tax 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 automaker’s departure. “You can’t just make these promises and throw them around like they’re spare change in the drawer,” said Doug Winters, the township’s 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
This message was self-deleted by its author AnotherMcIntosh Dec 2012 #1
I'm sure if one dug into the money trail it could shed some quite interesting trails. n/t RKP5637 Dec 2012 #3
Sounds like free stuff and moochers. GeorgeGist Dec 2012 #2
USA, Inc. Money first, people last. n/t RKP5637 Dec 2012 #4

Response to RKP5637 (Original post)

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