Good Jobs First executive director Greg LeRoy issued the following statement today in response to the State of Wisconsin renegotiating its part of a $4.8 billion economic subsidy deal awarded to Foxconn Technology Group in 2017:
Corporate tax breaks cost public schools at least $2.37 billion in fiscal year 2019. Mark your calendars and join us tomorrow — Tuesday, April 13 — for a conversation on how we can get corporations to pay their share so our children thrive.
This is Arlene at Good Jobs First with lots of news. We led a coalition calling on the Treasury Department to enforce and Rescue Plan provision encouraging states to put a moratorium on new economic development incentives. We released two major reports, including one on school funding, and we’re proud to be part of a distinguished group talking about ways to unrig the corporate tax code. Let’s dive in.
Economic development tax abatements given to corporations cost public school districts over $2.37 billion in foregone revenue in fiscal year 2019. That’s an increase of 13 percent – a $273 million jump – from just two years earlier and came during the pre-pandemic period of economic prosperity, a new report details. The losses were widespread: 97 school districts lost more than $5 million each, and 149 districts lost more than $1,000 per student. That left less money for students, who suffered poorer schools, and caused working families to pay higher local and state taxes.