Tax Incremental Financing
This web page was last modified June 27, 2012 at 5:10 PM.
This web page was last modified June 27, 2012 at 5:10 PM.
Tax Incremental Financing, originally meant as an incentive to redevelop abandoned urban areas, soon became just another source of public subsidy for private gain as developers and politicians learned to manipulate the system. During my time living in Madison, I saw the same handful of developers receive TIF funding again and again, mainly to build upscale condos and high-end student housing.
The Great American Jobs Scam: The Corporate Tax Dodging and the Myth of Job Creation by Greg LeRoy , should be required reading for all local and state officials. Completely demolishes the myths surrounding corporate subsidy in its many forms.
From the web site:
’Here is the secret history of our economic times, a tale of public larceny told plainly and painstakingly and also with a dash of mordant humor. Our erstwhile corporate benefactors have taken us all for a ride. This book is the first step on the long road back.‘ –
Thomas Frank, author of What’s the Matter With Kansas?
The book is available for purchase, or you may read the book in its entirety at the web site linked above.
This paper proposes a solution to these problems through three reforms that create a stronger tax incremental district (TID) classification system, remove TIF –based incentives for developing open land, and add incentives for stricter joint review board examination of TIF project plans.
Our analysis of 235 municipalities in the metropolitan Chicago region finds cities, towns, and villages that had TIF districts actually grew more slowly than municipalities that did not use TIF .
"The multiplier effect is the last refuge of a dishonest economist." - Ed Lotterman, Economist