Target management apparently didn't get the memo. Faced with stagnating
wages and increasing inequality, American workers and taxpayers are
waking up to the big box gambit where irresponsible employers subsidize
their low wages through favorable tax packages. When Target threatened
to stop opening new stores in
Chicago if the Windy City gave final approval to its ordinance requiring a living wage for retail workers (see this
Dispatch
for more details), it opened up a new debate over why cities are
offering low-wage retail stores tax subsidies in the first place. As a
new report
produced by the Neighborhood Capital Budget Group documents, Target
received $9.9 million in tax-increment financing (TIF) to subsidize its
existing stores in Chicago.