Offering local tax subsidies to keep or promote businesses has long been a favorite tactic of politicians. There’s just one problem, according to Milano’s Rick McGahey: they don’t work.
McGahey, a professor of public policy and economics, focuses on tax breaks offered to FreshDirect in a recent op-ed in Crain’s New York Business. Critiquing the approximately $2 billion New York City spends annually in business-pleasing subsidies, McGahey writes that such policies are the result of the region having no real economic development strategy. The region would be better off if these taxpayer-financed raids would stop.,
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