Fishkind Conversations: Incentives To Lure Big Businesses Could Leave Taxpayers On The Hook
Economic incentives - such as slashed property taxes or payments tied to the number of jobs brought in by a business - have become the norm for city and state governments to get businesses to relocate.
A case in point: Orlando recently lost a bid for Honeywell’s corporate headquarters to a $46 million incentive package from Charlotte, North Carolina.
Economic analyst Hank Fishkind tells 90.7’s Nicole Darden Creston while incentives do bring businesses to town, in the long run, a business may not stay. For instance, in the example above, Honeywell is moving just as its current incentives in New Jersey run out.
And General Motor’s recent plant closures include one in Lordstown, Ohio that received $60 million in incentives to set up shop.
Still, Fishkind says these incentives continue to grow, in spite of the risks.
Click the Play Audio button above to hear the conversation.