States Use Tax Breaks in War for Jobs
Bloomberg Businessweek quoted Dennis Cuneo, managing partner of the Washington, D.C. office, in the May 4 article "States Use Tax Breaks in War for Jobs." The publication reported findings from a study out of the University of Missouri-St. Louis that shows state and local governments are giving away $70 billion in annual subsidies to companies to try to attract jobs. This is not new, but the practice is coming under renewed scrutiny because of strapped government budgets. Businessweek reports that state deficits could reach a combined $112 billion in the fiscal year starting July 1. Several organizations track subsidies, but there's no comprehensive national database. Dennis, who has managed corporate site selections, said the competition "is as intense as I have ever seen it."