8 Companies Benefiting Big from Tax Breaks
In the last 35 years, companies in the United States have received a whopping $64 billion from the government in the form of deals and subsidies. Most of the funds have been in the form of aid or breaks from taxes and levies in order to encourage businesses to establish operations in certain parts of the country. In fact, 240 so-called “megadeals,” interactions in which the government shelled out more than $75 million to promote the state or local interests of a business, have been identified by nonprofit group Good Jobs First.
It will surprise no one familiar with the U.S. economy that many of the deals have gone to members of the auto industry. Between the recent bailouts and fears of outsourcing that were prevalent in the 1990s and 2000s, automakers were the frequent beneficiaries of generous government packages. It should also come as no surprise that it is Michigan, the onetime hub of the auto industry, that has given out the most megadeals, followed closely in second by New York. The next states to dole out such deals come nowhere near the totals of the two leaders. Unfortunately, Michigan continues to have one of the weakest economies in the union despite all the help it has given to the automotive industry.
Let’s take a closer look at the eight biggest megadeals in which companies were subsidized by the government, using figures from a June report compiled by Good Jobs First, which calls itself “the nation’s leading resource for grass roots groups and public officials seeking to make economic development subsidies more accountable and effective.”