Paying Taxes to the Boss: How a Growing Number of States Subsidize Companies with the Withholding Taxes of Workers

April 2012

By Philip Mattera, Kasia Tarczynska, Leigh McIlvaine, Thomas Cafcas and Greg LeRoy

States are increasingly using the withholding taxes of their workers to subsidize companies. This is justified in the name of job creation, but payments often go to firms that simply move existing jobs from one state to another, or to ones that threaten to move unless they get paid to stay put.

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Appendix: Subsidy Program Descriptions