Skip to main content

View Diary: Corporations get billions from cities and states but they often don't keep their end of the bargain (135 comments)

Comment Preferences

  •  upfront cash (4+ / 0-)

    If I ask a person to do a job, and give them the cash upfront, or guarantee the cash upfront, then I have little incentive to make fulfill their end of the deal.  This is what is happening here.  We are essentially giving away money so the local and state authorities can say they are doing some to attract jobs, while purposefully not holding on to any leverage so that when the promises of job do not come true there is nothing but blame on the firms, no way to monetize that blame.  This is what is often done with executives and football coaches.  Guaranteed cash, no real consequences.

    What I have seen done is the benefits are given in terms of long term tax breaks based on productivity.  Your store would generates sales tax, we will rebate those to help you recover some of your initial expenses to move here.  You employ people, we will pay your payroll taxes to cover some of your expenses of hiring and training.  These are rational incentives.  if the firm does not generate sales, does not hire people, then they get nothing, the state is out nothing.  

    If the incentives are tied to jobs and promoting the local economy, then make the rewards tied to jobs.  Giving away tax payers cash in exchange for vaque promises is just that, a give away.

Subscribe or Donate to support Daily Kos.

  • Recommended (151)
  • Community (65)
  • Elections (43)
  • Civil Rights (38)
  • 2016 (32)
  • Culture (32)
  • Baltimore (28)
  • Economy (27)
  • Environment (27)
  • Texas (27)
  • Bernie Sanders (27)
  • Law (27)
  • Hillary Clinton (24)
  • Labor (23)
  • Rescued (21)
  • Health Care (21)
  • Barack Obama (20)
  • Republicans (19)
  • International (18)
  • Freddie Gray (17)
  • Click here for the mobile view of the site