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Tax breaks for jobs not working out too well in Massachusetts

Companies keep tax breaks even as they shed jobs, Globe reports:

Hundreds of the projects delivered fewer jobs than promised, and some companies actually slashed employment. Many firms won subsidies for projects they were set to build without state assistance; in some cases, incentives that were approved long af ter the projects were underway or complete. And many got generous packages though they agreed to create only a handful of low-paying jobs.


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Comments

When the companies write the tax breaks of course there will be no strings attached. Make them repay the breaks, with interest, if the jobs don't stay for 10 years.

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This is why the business tax rates should be cut for everyone across the board rather than doling out favors to the connected.

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But if we don't give these companies tax breaks, they'll build elsewhere!

If we don't give companies film tax credits, they'll film elsewhere!

If we don't allow casinos in MA, people will spend their money elsewhere!

Ad nauseam.

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First, good article. There may be a few logical times when tax credits come in handy to create jobs, for instance when $170 million of state money over 10 years can be parlayed into $1 Billion of incentive funds for the life science industry. But the state should be far more stringent in it's process, and getting guaruntees, and at least discuss clawback provisions (getting our money back) when companies take our dollars and fail to deliver on jobs.

As for film tax credits, you can argue whether they are a bad deal for the state. But you certainly can't argue whether the movies were being made here before the credits. We've had a ten-fold increase in film dollars spent here and in films made here since the credits. We can decide it's not worth it, and there's various evidence on both sides. But don't try to question the fact that it will happen, because we have the evidence.

As for casinos, we can all recognize the potential moral concerns around casinos, and the potential negative impacts. No question. But there's also no question that over a billion dollars of Massachusetts dollars are going to CT and RI. Would it be worth it to keep those dollars here? That's a fair argument. But we can't actually argue about what is happening.

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Funny enough Deval was 100% right about Casinos when he gave his proposal to offer licenses for them. They will come whether we want them or not, and it would have been far better to have been in control of the situation.

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To detest that smarmy grifter from Bob's Furniture. He played this one for $75K.

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Why does the fact that the Boston Public Library is looking to savage its neighborhood branches for want of only $3.6 million dollars come instantly to mind when I read this story?

Bob’s Discount Furniture, indeed.

Jonas Prang

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