Friday, December 07, 2012
Ind. Gov't. - More on "UNITED STATES OF SUBSIDIES: A series examining business incentives and their impact on jobs and local economies"
This ILB post from Monday linked to the NY Times' three-part series on tax breaks and other incentives for local jobs. It also linked to the database of these incentives compiled by the Times.
Thursday in the Times, this editorial that begins:
Competition among states and cities to lure businesses in hopes of creating jobs is not new, but it has become more fierce in recent years. An investigation by The Times found that state and local governments are giving out $80 billion a year in tax breaks and other subsidies in a foolhardy, shortsighted race to attract companies. That money could go a long way to improving education, transportation and other public services that would have a far better shot at promoting real economic growth.What caught my eye was this paragraph:
In one particularly egregious example in Pontiac, Mich., the State of Michigan gave $14 million in tax credits and a state pension fund guaranteed $18 million in bonds to a movie studio that created just 12 permanent jobs. In Texas, Amazon.com, the online retailer, received tax abatements, sales tax exemptions and other benefits totaling $277 million to open a warehouse that promises to employ 2,500 people. Those benefits were granted after the retailer closed another warehouse because of a dispute with the government involving sales taxes.Because the State of Indiana has reportedly given Amazon breaks in collecting Indiana sales tax in return for its building warehouses in Indiana, the ILB looked in the Times database to see grants to Amazon by state. The Times table shows 9 states, Texas tops it with $277 million, Arizona is in the rear with $740,000. Indiana ranks fifth, with tax credits of $7 million to Amazon.
Posted by Marcia Oddi on December 7, 2012 02:07 PM
Posted to Indiana Government