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View Diary: NJ Casino Declares Bankruptcy In 10 Months, Gov. Christie's Bad Bet Will Cost Taxpayers Millions (184 comments)

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  •  Most of Public Money Not Lost (2+ / 0-)
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    eXtina, mconvente

    Starting in 2012 when it opened, the casino was given "$261.4 million in state tax credits over the next 20 years". If it was a steady annual credit, that's possibly only $26M in tax credit for the one year. And since its bankrupt in the first year, it probably doesn't owe any taxes anyway, regardless of the tax credit deal.

    In fact the tax credit was a decent way to protect the state from losses while encouraging the project and private investment that could count an extra quarter $BILLION in profits if successful. If that's the best investment by NJ.

    So yes, the main point of this article is that Christie's priorities are wrong: a risky losing casino further sinking Atlantic City, rather than a tunnel to NYC that was guaranteed to succeed in both stimulus and payoff, economically and in quality of life.

    But the actual cash cost to NJ is probably only 10% of what this article charges. Because NJ didn't risk it all up front.

    No wonder the casino went under, with even NJ government officials betting with their heads, not over it.

    "When the going gets weird, the weird turn pro." - HST

    by DocGonzo on Fri Feb 22, 2013 at 05:09:47 AM PST

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    •  I didn't say that the (0+ / 0-)

      money was lost.

      I was asking why there were no definite figures as to how much public money had been spent already on the project - the diary is a bit unclear.

      As to the credits and pledges, well, those don't appear to have kicked in yet.

      The banks have a stranglehold on the political process. Mike Whitney

      by dfarrah on Fri Feb 22, 2013 at 07:17:21 AM PST

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      •  because it hasn't been added up (0+ / 0-)

        no one really knows right now

        who knows how much is being withdrawn from worker's paychecks as state income tax but not disbursed to the state but rather back to the casino? highly doubt anyone has added that up, along with all the other such amounts, like property tax rebates -which have yet to be paid

        "I'm sculpting now. Landscapes mostly." ~ Yogi Bear

        by eXtina on Fri Feb 22, 2013 at 01:52:35 PM PST

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      •  Money Is Lost (0+ / 0-)

        You don't seem to understand that NJ sold dozens, perhaps hundreds of $millions in bonds to cover the property tax credits. That is real cash - with interest - that NJ actually has to repay from taxes, cash NJ has lost. Without the casino bringing any benefit to justify the expense.

        "When the going gets weird, the weird turn pro." - HST

        by DocGonzo on Fri Feb 22, 2013 at 04:28:47 PM PST

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