Every year, states spend billions on tax credits, subsidies and cash grants to corporations and industries in the name of economic development. With the stagnant recovery and still high unemployment rates, there is mounting scrutiny on whether these programs are actually creating jobs. A new report shows that while many states have at least some performance requirements, almost half don’t have any job creation, retention or training standards.
PSN has noted in previous Dispatches, these credits are costly, favor out-of-state workers, offer minimal to no returns, do not create permanent jobs, and place an excessive burden on taxpayers in a time of economic uncertainty. The Massachusetts Department of Revenue recently determined that in twelve states that administer a film tax credit, the return is extremely meager-- finding that states were only getting back "$.0.07 to $.0.28 per dollar of tax credit granted."