The Washington D.C.-based non-partisan research center Good Jobs First released a report recently that slams the practice of states engaging in “regressive business promotion policies it says siphons jobs from one region to another with little net gain to taxpayers,” according to The Hannah Report. The report, titled “The Job-Creation Shell Game: Ending the Wasteful Practice of Subsidizing Companies that Move Jobs from One State to Another,” determined that the practice is a waste of taxpayer funds, which are used to provide tax incentives to businesses so that they relocate to an area, effectively reshuffling existing jobs geographically (dubbed “interstate job piracy”) at the expense of other communities instead of encouraging new business activity, a press release from the organization said.
Good Jobs Ohio said that some companies that were given such incentives failed to uphold their end of the deal, such as creating new jobs, which has driven Gov. Kasich and others to reconsider pursuing such bidding wars — a move praised by the organization (see our January 29, 2013, blog post for more information).
For more, read this Toledo Blade story, Good Jobs Ohio’s press release and the full report.
