Monday, January 04, 2010

Cities "clawback" sweetheart tax breaks from deadbeat corporations

Some cities have had enough of corporate failures to follow through with promised job creation and revenue realization, so they're rescinding tax abatements:
The newfound boldness comes from communities and states that have long bent over backward to lure companies and jobs by offering abatements and other incentives — to the tune of an estimated $60 billion a year in the United States, according to the Washington-based economic development watchdog group Good Jobs First.

The willingness to write — and enforce — the "clawback" provisions comes even as companies across the country struggle and against a broader backdrop of governments getting tough on business practices.

What's more, the poor economy has communities thinking about how the tax breaks they dole out will play with residents who have grown increasingly angry at the thought of anything that hints of corporate welfare.

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