True Liberal de Blasio Spells Death for Corporate Tax Breaks
NEW YORK ( TheStreet) -- New York mayoral frontrunner Bill de Blasio wants to end tax incentives for big corporations that want to do business in the city, and my only question is: What took so long?
Multinationals including Bank of America
But those corporate subsidies are "a very suspect approach that hasn't yielded the kind of results the taxpayer deserves," De Blasio told the newspaper.
That's putting it mildly.
The fact is that companies need to be in major cities, because they can't attract the kind of young, childless, creative, work-around-the-clock people they want to hire if they are in a lifeless suburb.
No one likes tax breaks better than Amazon
Or look at Motorola Solutions
Goldman will still move as many back office jobs to Salt Lake City as it can , but New York will always be its U.S. headquarters. Why? Because there are easily 10 different city blocks in New York that have more world class cultural institutions than all of Salt Lake City. When they occasionally have time off, Goldman employees like to visit them. And their executives like to attend fundraising events honoring them.
Could London potentially steal some of Goldman's business from New York?
It seems unlikely. How much of that $3 billion a year in New York's annual corporate tax breaks goes to Goldman? Three hundred million seems high. In other words, its a pittance to Goldman. Its not enough to drive any major business decisions. If tax breaks were the answer to successful governance, New York would be emptying out while everyone moved to the U.S. Virgin Islands.