Are Companies Getting Tax Breaks Creating New Jobs? Report Says “No.”Posted: December 10, 2013
85% of the projects in the CNY region promising to create new jobs in exchange for tax breaks failed to do so.
This startling fact is contained in a new report on the hodge-podge of economic development grants and tax breaks overseen by NY State’s Industrial Development Agencies (IDA’s), taxpayers aren’t getting many new jobs for their investment of tax dollars. The report, Regional Review: A Closer Look at New York’s $7 Billion Subsidy System was written by ALIGN NY.
In looking at the available regional data, we identified several problems. Simply put, there is very little transparency or accountability among these programs, spending is increasing in most regions of New York, a small number of big businesses are taking advantage of uncoordinated programs, and too often subsidies fail to create jobs for New Yorkers.
ALIGN suggests a solution: passage of the The Just and Open Business Subsidies (JOBS) Act, A8203:
New state legislation, offers key solutions to these problems by requiring recipients of economic development subsidies to set clear good job and local hiring targets, transparently track subsidies and job creation on a single public website, and establish a “money back guarantee” to recapture subsidies if recipients break their promises. By enacting common sense reforms, it will be possible to assess the effectiveness of all of New York’s economic development programs—at the local, regional, and statewide level.
The Urban Jobs Task Force has signed on as a supporter of this legislation.