Bloomberg Tax wrote about a new Good Jobs First that looked at major economic development programs across the nation. The report is "FINANCIAL EXPOSURE: Rating the States on Economic Development Transparency."
Right now, three tech companies—#1 and #2 microchip makers Intel and Samsung and electric-truck start-up Rivian—are staging secret subsidy auctions, playing states against each other for new facilities.
Good Jobs First talked with education expert Dr. Kendall Deas about the role corporate incentives and subsidies play in South Carolina, which in fiscal year 2019 cost the state’s public schools $423 million – a $99 million increase in two years, according to our analysis. The findings raise a key question: do newly arriving companies that get big tax breaks pay their fair share for the public services they and their employees utilize?
Whether or not it is a good idea to increase subsidies for renewable energy, one thing is certain: we need to stop giving them to fossil-fuel companies and start charging dirty energy for their “externalities,” i.e., the costs of carbon and other pollutant emissions.
It is not uncommon for state and local governments to pay out subsidies to companies to get them to retain existing jobs rather than creating new ones, but Iowa finds itself in the position of giving millions to food giant Kraft Heinz to eliminate far more jobs than it is saving.
Amid a global scandal in which Volkswagen admitted to equipping its diesel-engine cars with devices that cheat air pollution tests, Tennessee lawmakers are planning to review the state’s subsidy contract with the German automaker, including the clawback provisions.
92 percent of small business owners believe their state's economic development incentives are biased toward big business.
After losing to South Carolina in the competition for a new Volvo auto plant, North Carolina is trying to figure out what went wrong. Some blame the legislature’s gridlock over reauthorizing the state’s biggest subsidy program, the Jobs Development Incentive Grant (JDIG). Others say incentives had a minimal impact on Volvo’s decision and that North Carolina would never have been able to outbid South Carolina anyway.
Facebook just announced a third expansion of its $1.5 billion data center in Iowa. This followed a similar move by Google for its server farm in the state. These developments are fruits of the effort by officials to encourage big-name tech companies to locate in Iowa. This private investment, however, does not come free.