Putting Pension Costs in Context: How Corporate Tax Breaks are Diverting State Revenue Needed for Public Employees' Retirement (Part I)
The first part of this report looks at six states that are simultaneously in danger of not being able to pay public employees' pensions and giving out massive corporate tax breaks. $3 billion was spent on corporate subsidies and tax breaks in Arizona, Connecticut, Kansas, Kentucky, Oklahoma, and Wyoming during FY 2018. About two-thirds of that amount would have covered the states' pension system contributions. Curbing corporate welfare can make a substantial difference in relieving the pressure on state budgets and supporting retirement security for millions of public employees.
Putting State Pension Costs in Context
Public pensions are under assault throughout the United States. Led to believe that retirement costs for government workers are out of control, governors and legislators in numerous states have been moving to cut benefits and tighten eligibility requirements. Good Jobs First seeks to put current pension costs (known as employer normal costs) into comparative context. Focusing on 10 states where the pension cost controversy has been intense, we compare those costs to the amount of revenue those states lose each year as the result of economic development subsidies offered to corporations as well as the tax preferences and accounting loopholes (including offshore tax havens) used by companies.
Show Us the Subsidized Jobs: An Evaluation of State Government Online Disclosure of Economic Development Subsidy Awards and Outcomes
Prominent studies that purport to measure and rank the states’ “business climates” are actually politicized grab-bags of data. They contradict each other wildly, have no predictive value, and should not be used to inform public policies. This is only the third such analysis of pseudo-social science “business climatology” in 27 years.
This companion report to our Money for Something and Show Us the Subsidies studies evaulates state subsidy programs on their use of clawbacks and other penalties in enforcing job-creation, job quality and other performance standards.Press release. Executive summary. Full report with appendices. Full report without appendices. Appendices.
In this report Good Jobs First reveals that retailers in 26 states are being allowed to "skim" more than $1 billion a year as compensation for collecting sales taxes on behalf of state and local governments. The biggest impact is felt in the 13 of those states that put no ceiling on the amount of compensation any given retail company can receive, thus giving a windfall to the likes of Wal-Mart. Press release
This report examines legislative changes to two geographically targeted economic development programs: tax increment financing (TIF) and enterprise zones. It asks the question: Have laws governing these programs been weakened to permit the use of these programs in non-blighted or affluent areas? In virtually every state that has weakened its TIF or enterprise zone program, the answer is "Yes."
The first study to catalog state and local economic development subsidies given to private prisons.