Press Releases

12/15/2014

Report: Development Subsidies Fuel Economic Inequality by Enriching Billionaires and Low-Wage Employers

Washington, DC, December 16, 2014—Taxpayer subsidies awarded to corporations by state and local governments, supposedly to create good jobs and growth, are instead fueling economic inequality by going to companies that are owned in whole or part by billionaires, and to low-wage employers.

Indeed, about one-third of the individuals in the Forbes 400 are linked to 99 taxpayer- subsidized companies, including every one of the 11 wealthiest individuals and all but two of the richest 25. Subsidies have also gone to 87 companies that pay low wages. More than $21 billion in taxpayer dollars have been awarded to these two sets of firms. Seven retailers appear on both lists.

Those are the major findings of Tax Breaks and Inequality, a report published today by Good Jobs First, a non-profit resource center on economic development based in Washington, DC. The report is available at  www.goodjobsfirst.org/taxbreaksandinequality and was funded by the Nathan Cummings Foundation.

10/30/2014

Good Jobs First Releases Analysis of GASB’s Proposed Standard for Tax Abatement Disclosures

Washington, DC, October 31, 2014—Good Jobs First today issued its analysis of the Governmental Accounting Standards Board’s (GASB) proposed new accounting standard for economic development tax subsidies. Using the umbrella term “tax abatements,” for property, income, sales and other tax expenditures, GASB’s proposed new standard will for the first time require state and local governments to report how much revenue they lose to economic development subsidies.

Good Jobs First’s overview page about GASB and the “Exposure Draft” is at www.goodjobsfirst.org/gasb.  That page also links to a detailed summary and critique of the proposed standard at http://www.goodjobsfirst.org/gasb_analysis .

09/16/2014

Good Jobs First Congratulates California for First-Ever Ban of Consultant Commissions on Job Subsidies

Washington, DC, September 17, 2014 – Good Jobs First today congratulated the State of California Governor’s Office of Business and Economic Development (“GO-Biz”) for the first-ever effective ban in the United States of consultants receiving percentage commissions on a major economic development tax-credit program. It also criticized the prominent tax-consulting firm led by G. Brint Ryan of Texas for seeking to overturn the ban.

09/11/2014

September 12, 2014

Greg LeRoy, executive director of Good Jobs First, today released the following statement about Nevada legislation for the Tesla “gigafactory” project.

“We are struck by several aspects of this massive subsidy package, which we price at $1.287 billion, or the 12th largest in U.S. history.

“Despite months of rhetoric about 6,000 jobs, the fine print actually does not require Tesla Motors itself to create any specific number of jobs in order to be eligible for the tax credits and abatements. Apparently, the bulk of hiring could be at suppliers.

09/03/2014

For Immediate Release September 4, 2014

Bob Fulkerson of the Progressive Leadership Alliance of Nevada and Greg LeRoy of Good Jobs First issued the following statement regarding reports that Tesla plans to announce it has chosen Nevada for its “gigafactory,” or massive electric-car battery factory.

This is a huge event in Nevada history. If the taxpayer subsidy package for the facility is $500 million or more, as Tesla has demanded, it would be the biggest subsidy package in Nevada history by a factor of more than five. (There is only one recorded eight-figure deal in Nevada history and none over $89 million.)