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The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation

Greg Leroy

The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation - image
Rating: 4.5/5 Stars
Rank: 4645
Founder and director of the nonprofit center Good Jobs First, LeRoy offers a parade of damning case studies showing why communities should not woo corporations with subsidies.

Corporate tactics, he finds, include quickly shuttered subsidized facilities, union busting and jobs that pay below the poverty line.

Rewritten tax codes, which focus on sales taxes but ignore payroll and property taxes, as well as other tax abatements, undermine schools; most stadiums and convention centers further bleed public monies.

Moreover, subsidies generally support suburban sprawl rather than accessibility to public transit used by the poor.

Some corporate location consultants work both for companies and governments—"a sad reflection" of a disorganized public sector.

On the corporate minus side, tax incentives to relocate, he shows, are dwarfed by labor, transport and utility costs.

The upshot? Corporations are paying 28% less in state and local taxes than 20 years ago. LeRoy's suggested reforms include greater disclosure about subsidy deals; money-back guarantees if companies don't fulfill their pledges; requiring subsidized jobs to meet local average wages; closing corporate loopholes; and making sure every deal is approved by elected officials rather than appointed ones. (July)
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About the Author

He is the author of No More Candy Store: States and Cities Making Job Subsidies Accountable and winner of the 1998 Public Interest Pioneer Award.

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Editorials

Sample 3 of 8

The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation
Greg Leroy
 Sandra Feldman, American Federation of Teachers
We have supported Greg’s work since 1998. This book is a welcome resource for leaders of our union all over.
 Jim Hightower, author, Thieves in High Places and Let’s Stop Beating Around the Bush
LeRoy reveals why corporate tax cuts don’t work: corporations get huge subsidies while workers get trickle-down lip service.
 Robert S. McIntyre, Citizens for Tax Justice
…should be required reading for governors, mayors and legislators who want to invest their citizens’ money wisely and effectively.




Customer Reviews

Sample 3 of 7

The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation
Greg Leroy
 An Important and Compelling Book
(Iowa City, IA) July 17, 2005 - 5.0/5 stars
I hope the people who really need to read this book do read it--the state legislators and local officials who have been seduced by the arguments of the "job scammers," as Greg LeRoy calls them. As an academic economist... read full review
 A well-written book by a real expert
(Iowa City, IA) July 5, 2005 - 5.0/5 stars
As Greg LeRoy makes abundantly clear through one rich example after another, state and local governments are spending taxpayers' money with abandon in the name of "economic development" and not producing the desired results:... read full review
 Must Reading for Social Equity Advocates
(Sacramento, CA) July 6, 2005 - 5.0/5 stars
Just as he did so eloquently in "No More Candy Store", Greg LeRoy exposes the dirty little secret behind economic development tax subsidies which are no more than corporate welfare give aways. Anyone working in communities... read full review




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