Why not get in line? Cities, counties, all levels of government are giving it away. So why shouldn’t American Greetings get in line. Crain’s Cleveland Business is reporting today that the Brooklyn, Ohio Company seeks to relocate because the city raised its city tax a half percent.
Governments are giving away – tax abatements, land, other gratuities – tax revenue to businesses. At the same time governments are tapping regressive taxes and hosts of fees to make up for revenue losses.
(Please check my post below on this site about the city income tax problem.)
When will we learn? Don’t capitalists say that the market rules. Why have governments gotten into the business of business?
It’s a losing game for cities no matter what the mayors or council members say. However, indications are full steam ahead. Give it away. By the bushel. Or really by the truckload.
They are just pandering to voters. They give revenue away in order to say that they are spurring economic development.
Too often what they are doing is rewarding one business that will just take business away from another. Net gain: Nothing. Maybe net losses, however.
But each time the office-holders will tell you they are bringing in jobs. And every time you look at the job picture, well, we are losing jobs.
Here’s a link to Crain’s article. Let the bidding begin:
http://www.crainscleveland.com/article/20100107/FREE/100109901 [1]
Links:
[1] http://www.crainscleveland.com/article/20100107/FREE/100109901
[2] http://li326-157.members.linode.com/content/i-dont-do-film-id-subsidy
[3] http://li326-157.members.linode.com/content/roldo-bartimole-0
[4] http://li326-157.members.linode.com/blog/roldo/if-only-rta