Finally some Cities and Counties are getting wise on giving away millions in tax breaks to corporations on the promise of jobs for the area that never materialize.
From the Associated Press:
As the recession drags on, municipalities struggling to fix roads, fund schools and pay bills increasingly are rescinding tax abatements to companies that don't hire enough workers, lay them off or close up shop. At the same time, they're sharpening new incentive deals, leaving no doubt what is expected of companies and what will happen if they don't deliver.
"We will roll out the red carpet as much as we can (but) they are going to honor the contract," said Brendon Gallagher, an alderman in DeKalb, Ill., where Target Corp. got abatements from the city, county, school district and other taxing bodies after promising at least 500 jobs at a local distribution center.
So when the company came up 66 workers short in 2009, Target got word its next tax bill would be jumping almost $600,000 — more than half of which go to the local school district, where teachers and programs have been cut as coffers dried up.
Now, will States rescind the massive tax breaks given to IBM, who is busy offshore outsourcing every job that isn't nailed down?
The article states corporations get $60 billion in tax incentives each year to create jobs....
This is the first time I've read a story on any local or state government holding a company to the promise.
In St. Louis County, officials have told Pfizer that if it cuts 600 jobs, as planned, they'll rethink the $7 million in tax breaks they promised to give the company for the next 10 years.