The Great American Jobs Scam

Corporate Tax Dodging and the Myth of Job Creation

Greg LeRoy (Author)

Publication date: 07/21/2005

The Great American Jobs Scam
For the past 20 years, corporations have been receiving huge tax breaks and subsidies in the name of "jobs, jobs, jobs." But, as Greg LeRoy demonstrates in this important new book, it's become a costly scam. Playing states and communities off against each other in a bidding war for jobs, corporations reduce their taxes to next-to-nothing and win subsidy packages that routinely exceed $100,000 per job. But the subsidies come with few strings attached. So companies feel free to provide fewer jobs, or none at all, or even outsource and lay people off. They are also free to pay poverty wages without health care or other benefits. All too often, communities lose twice. They lose jobs--or gain jobs so low-paying they do nothing to help the community--and lose revenue due to the huge corporate tax breaks. That means fewer resources for maintaining schools, public services, and infrastructure. In the end, the local governments that were hoping for economic revitalization are actually worse off. They're forced to raise taxes on struggling small businesses and working families, or reduce services, or both. Greg LeRoy uses up-to-the-minute examples, naming names--including Wal-Mart, Raytheon, Fidelity, Bank of America, Dell, and Boeing--to reveal how the process works. He shows how carefully corporations orchestrate the bidding wars between states and communities. He exposes shadowy "site location consultants" who play both sides against the middle, and he dissects government and corporate mumbo-jumbo with plain talk. The book concludes by offering common-sense reforms that will give taxpayers powerful new tools to deter future abuses and redirect taxpayer investments in ways that will really pay off. What do Wal-Mart, Dell, Fidelity Investments, Boeing, and Cabela's have in common? They're all part of a $50 billion a year scam in which—in the name of "job creation"—corporations play states and cities against each other to win hefty taxpayer subsidies that routinely exceed $100,000 per job. But do they provide more jobs, higher wages, or improved living standards in exchange? Greg LeRoy exposes these deals for what they are—no-strings-attached free rides for corporations that rarely create any new jobs. In fact, after securing these packages, many companies lay people off, pay poverty wages, or even relocate to other states.

This is the Great American Jobs Scam: a costly bait-and-switch that swindles communities in more ways than one. They lose jobs—or gain jobs so low-paying they do nothing to help the community—and they lose revenue through massive corporate tax breaks. That means fewer resources for maintaining schools, public services, and infrastructure.

LeRoy exposes corporations' careful orchestration of this scam, dissects government and corporate mumbo-jumbo with plain talk, and offers commonsense reforms that will give taxpayers powerful new tools to protect our communities.

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Book Details
Overview
For the past 20 years, corporations have been receiving huge tax breaks and subsidies in the name of "jobs, jobs, jobs." But, as Greg LeRoy demonstrates in this important new book, it's become a costly scam. Playing states and communities off against each other in a bidding war for jobs, corporations reduce their taxes to next-to-nothing and win subsidy packages that routinely exceed $100,000 per job. But the subsidies come with few strings attached. So companies feel free to provide fewer jobs, or none at all, or even outsource and lay people off. They are also free to pay poverty wages without health care or other benefits. All too often, communities lose twice. They lose jobs--or gain jobs so low-paying they do nothing to help the community--and lose revenue due to the huge corporate tax breaks. That means fewer resources for maintaining schools, public services, and infrastructure. In the end, the local governments that were hoping for economic revitalization are actually worse off. They're forced to raise taxes on struggling small businesses and working families, or reduce services, or both. Greg LeRoy uses up-to-the-minute examples, naming names--including Wal-Mart, Raytheon, Fidelity, Bank of America, Dell, and Boeing--to reveal how the process works. He shows how carefully corporations orchestrate the bidding wars between states and communities. He exposes shadowy "site location consultants" who play both sides against the middle, and he dissects government and corporate mumbo-jumbo with plain talk. The book concludes by offering common-sense reforms that will give taxpayers powerful new tools to deter future abuses and redirect taxpayer investments in ways that will really pay off.What do Wal-Mart, Dell, Fidelity Investments, Boeing, and Cabela's have in common? They're all part of a $50 billion a year scam in which—in the name of "job creation"—corporations play states and cities against each other to win hefty taxpayer subsidies that routinely exceed $100,000 per job. But do they provide more jobs, higher wages, or improved living standards in exchange? Greg LeRoy exposes these deals for what they are—no-strings-attached free rides for corporations that rarely create any new jobs. In fact, after securing these packages, many companies lay people off, pay poverty wages, or even relocate to other states.

This is the Great American Jobs Scam: a costly bait-and-switch that swindles communities in more ways than one. They lose jobs—or gain jobs so low-paying they do nothing to help the community—and they lose revenue through massive corporate tax breaks. That means fewer resources for maintaining schools, public services, and infrastructure.

LeRoy exposes corporations' careful orchestration of this scam, dissects government and corporate mumbo-jumbo with plain talk, and offers commonsense reforms that will give taxpayers powerful new tools to protect our communities.
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