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Saturday, October 22, 2016

David Cay Johnston: Billions of Tax Dollars Later, No New Jobs for New York [AUDIO]

The National Memo’s David Cay Johnston appeared on WNYC Tuesday morning, to discuss a disturbing new report that New York State is giving corporations billions of dollars in tax breaks to spur job creation that never materializes.

“This the latest in a number of studies but it’s the most comprehensive — and it shows that over the last nine years in New York, the state has given about $1,400 in tax breaks for every household in the state—$10 billion in round numbers,” Johnston said. “And instead of creating jobs, we have 175,000 fewer jobs. That is, we spent $57,000 per job eliminated.”

The news could be incredibly damaging to Governor Andrew Cuomo’s political standing — which may be why, Johnston says, the governor tried to suppress the information:

New York is hardly the only state to waste tax dollars in the name of job creation. As Johnston reported in The National Memo in October, states such as Arizona, Iowa, and Ohio have spent tens of millions on public-private partnerships that accomplish little — aside from redistributing taxpayer money to politically connected businesses.

To learn more about New York’s failed tax incentive policy, read David Cay Johnston’s latest column in State Tax Notes.

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  • HLB

    This article would be vastly improved w. an EMAIL link. Hoober Doober

  • johninPCFL

    FL has a comparable situation. Gov Scott has given away $billions to lure new corporations here (instead of using that same money to help companies already here) and, lo and behold, as soon as the tax incentives expire, the companies move on to the next offerer. Using the incentives to help ESTABLISHED FLORIDA COMPANIES seems like the better way to go, but these thick heads don’t seem to be capable of leaning anything that may interfere with their pre-conceived notions.
    Scott’s only “Florida first” incentive he actively went for was a drug testing act that would use his own company as the test agent. He would have made $millions (well, he’s got to get his $70million investment in buying the capitol back.)

  • Pamby50

    Just last week I was reading about Boeing wanting to move out of Seattle. Looking for better tax breaks. When they find what they are looking for, they will move again. What a joke. The same thing is happening here in TN.

    • CPAinNewYork

      Excuse me, but didn’t Boeing move its headquarters to Chicago a couple of years ago?

      • Pamby50

        Not their headquarters but the actual facility where they build the planes. Several states are in a bidding war. Seattle is trying to hang on.

  • jointerjohn

    I live in a rust belt city that spends millions to attract businesses who pay workers $10 per hour or less. They call it economic development but it is exactly the opposite. The companies pocket the money while their workers kids are in the free school lunch program. I propose that any business along with that business’ principle players and managers be prohibited from making political contributions anytime within five years of taxpayer assisted moves or expansions. Federal civil service employees are banned from partisan political activity under The Hatch Act, which argues that it protects against cronyism, yet a CEO can get a cool million in government funds with no restriction at all. SCOTUS says corporations are people and money is speech, but I guess federal employees are just organisms.

  • 4sanity4all

    Illinois is so broke that we have not been granting tax breaks to corporations, because we can’t afford to. We just lost a big office supply merger because we would not fund them. Too bad, let them go. Eventually, all of the states will wise up and stop giving them handouts. We gave Sears a bunch of tax breaks, and the day we said no more, they said bye. Corporations do not care whose lives they disrupt, it is all about the bottom lines for the CEOs and investors. And Republicans don’t want to extend unemployment compensation which would blunt the pain of these politician created tragedies. When I see that Sears, through their own bad decision making, is failing, I cannot help but feel some satisfaction, that after they screwed everyone they could, now Karma is paying them back. I hope states realize that corporations are just playing everyone against everyone else, and giving in to their extortion will not help in the long run, because corporations have no loyalty. Not to the states who welcome them and give them breaks, not to the workers who toil for them. When corporations have to pay their fair share of taxes, a lot of state coffers will not be so broke.

  • Liberalism Is Nonsense

    Liberty empowers us to choose which goals to work toward, which efforts to undertake, and how to adjust our ways when confronted with dynamic circumstances we could not foresee.