Dec 10, 2012
State and local governments hand out more than 80 billion dollars in tax breaks to corporations, according to a report by the New York Times. And the Times admits that’s an underestimate.
The report found that 48 companies received more than 100 million dollars from state governments alone since 2007. Among the biggest moochers were the auto companies GM, Ford, and Chrysler and other large corporations like Shell Oil, General Electric, Boeing, Amazon, Microsoft and Dow Chemical.
The State of Texas gave out the most, $759 for each state resident; Michigan was not far behind with $672 per person.
State and local governments continue to dole out these massive subsidies with one hand, while they cut services and raise taxes on everyone else with the other – to the tune of 150 billion dollars in cuts and tax increases by state governments last year alone.
The report by the Times simply confirms what many people already know. By pitting city against city, state against state, the corporations get billions for the promise of jobs that mostly never materialize – while governments, run by Democrats and Republicans, cut jobs, reduce social services, allow infrastructure to rot, and raise taxes on working people.