The practice of luring existing companies from one state
to another in exchange for big subsidies doesn’t create new jobs, drains
states of public-service funds and leaves taxpayers with the tab, a new
study from the Washington, D.C.-based Good Jobs First finds.
Interstate
job fraud, when companies re-label jobs as “new” in exchange for up to
nine-figure state subsidies to relocate, is wasteful and net benefits
are microscopic, said Greg LeRoy, executive director of Good Jobs First,
during a teleconference with press Thursday.
“Putting
lots of eggs in a few corporate baskets reduces funding available for
the low-risk, high payoff investments and education and infrastructure
that benefit all employers,” said LeRoy, the study’s primary author.
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