Calling out mal-investment or worse

Exposing Government Favoritism

This is the new frontier that cries out for further analysis & disclosure:

“Tax abatements are a common tool used by governments to stimulate economic development, but the taxpayer costs of such agreements are often hidden. This is a problem, because the cost of such corporate handouts from state and local governments is estimated to be as high as $70 billion per year.”

An obvious inequity: a company that has been a lifelong resident of a state can see a competitor be granted an immediate & huge tax subsidy.  Equitable? Equal treatment under the law? Not likely.

Worse, tax abatements provide a formal market for rent seeking and political corruption.  Chicago or Connecticut come to mind. We need more data on & analysis of this broad phenomena for the benefit of taxpayers and the economy.