Washington, DC, December 14, 2011 -- States are spending billions per year on corporate tax credits, grants and other economic development subsidies that often require little if any job creation and lack wage and benefit standards covering workers at subsidized companies. These are the key findings of Money for Something: Job Creation and Job Quality Standards in State Economic Development Subsidy Programs, a study published today by Good Jobs First, a non-profit research center based in Washington, DC. It is available at www.goodjobsfirst.org.
Washington, DC, November 15, 2011 -- A new report released today reveals how Verizon Communications achieves a negative federal tax rate to avoid paying its fair share of taxes, and aggressively uses tax loopholes and subsidies to cut its tax bills even more.
“Unpaid Bills: How Verizon Shortchanges Government Through Tax Dodging and Subsidies,” was produced by Citizens for Tax Justice and Good Jobs First, and released by the two organizations and the Communications Workers of America. The report shows that Verizon, a $100 billion dollar corporation, paid an effective federal tax rate of –2.9 percent between 2008 and 2010. For the year 2010 alone, Verizon’s federal tax rate was -5.7 percent. While most Americans are struggling to make ends meet and pay their fair share of taxes, Verizon actually received a federal tax rebate of nearly $1 billion rebate from the United States Treasury.
Washington, DC, November 7, 2011 -- Many workers providing food and retail service at Baltimore Washington International Thurgood Marshall Airport (BWI) are paid so little that they and their families depend on Medicaid, the Maryland Children’s Health Program, and food stamps, according to a study released today.
The study, entitled “Behind the Counter at BWI: Engine of Development or Pocket of Poverty?” was issued today by Good Jobs First at www.goodjobsfirst.org.
Washington, DC, October 24, 2011 -- Connecticut’s major economic development expenditures are high in cost, poorly monitored and may be undermining the public goods that actually constitute the state’s competitive advantage for jobs. These are the findings of a new Good Jobs First report released today.
The report entitled, Connecticut Economic Development Subsidies: Costly and Blunt, found that corporate income tax credits can have high cost-per-jobs figures (one cost taxpayers $169,667 per job) and that some companies getting subsidies don’t meet job creation promises. The report recommends that the state’s existing programs be thoroughly evaluated and that the state adopt better online transparency of costs and benefits before considering new spending.
Cleveland, Ohio, July 7, 2011—One hundred and sixty-four companies were given lucrative property tax breaks as they moved facilities around within the Cleveland and Cincinnati metro areas. The subsidized relocations, affecting an estimated 14,500 workers, were overwhelmingly outward bound and by many measures fueled suburban sprawl, especially in the Cleveland region.
By dispersing jobs away from the urban cores, the relocations worsened inequalities in wealth and opportunity. They moved jobs away from areas hardest hit by plant closings and with higher rates of poverty, unemployment and people of color to more affluent and less diverse areas. Most also moved to locations that are inaccessible via public transportation, denying job opportunities to carless workers and denying thousands more any commuting choice.