Comments on: Column: Pinterest and Blackstone as QE’s children – James Saft http://blogs.reuters.com/james-saft/2013/10/24/column-pinterest-and-blackstone-as-qes-children-james-saft/ Tue, 24 Mar 2015 16:54:45 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Missinginaction http://blogs.reuters.com/james-saft/2013/10/24/column-pinterest-and-blackstone-as-qes-children-james-saft/comment-page-1/#comment-2257 Sat, 26 Oct 2013 12:22:46 +0000 http://blogs.reuters.com/james-saft/?p=37411#comment-2257 Another thoughtful post James, thank you.

It occurs to me that these ventures, could in a way be described as being subsidized by the government.

Here in NY I see in the local papers many stories revolving around tax breaks and “payments in lieu of taxes” for businesses small and large. It seems that the state and local governments grant substantial tax incentives to start up businesses. Upstate we have a multi billion dollar computer chip fab plant that was built north of Albany. This fab called Global Foundries was granted hundreds of millions of dollars in tax breaks. It has created some jobs but not nearly what was expected. The local IDA is now broke and not a single “supporting” business (many small tech support companies were expected to open up adjacent to the plant) have come into the site. According to the local papers not a single one. They need more tax breaks apparently.

Aren’t these government tax incentives for businesses another form of subsidy? I’d love to see some investigation. Folks in the community were sold the concept that the large plant would help lower local property and school taxes (these are the largest tax bills most New Yorkers pay according to the Governor). I’ve seen no reduction at all. We do have a lot more Mercedes and BMW’s driving around though, so the local luxury car dealers appear to have made out OK.

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