A question on the wealth tax.

[JT45242]

9. Abatements cause so many problems -- property tax not the solution

The other problem with the property tax solution on real estate is that big corporations like Walmart, Apple, and Amazon refuse to build somewhere without a sweetheart tax abatement deal.

For example, the local Walmart was given a twenty year tax abatement and the city had to agree to upgrade the roads and sewer around the store. So more money flows out but none flows in from Walmart. The threat was to move to the next 'burb over and let them give the deal. When the abatement is about to run out, Walmart will give the city two options -- extend the tax abatement or we will close the store as 'obsolete' and move to the next burb.

Amazon and Apple were given 500 million in tax abatements to buld facilities that will produce 500, yep count them 500, jobs. So, it would seem that the state of Iowa is OK with a million dollar per worker subsidy to two of the ten most profitable COMPANIES in the world, but not with $1200 a month to an unemployed INDIVIDUAL.

The list could go on and on, but this has been standard operating procedureof (R) counties, cities, and states to give tax abatements to megacorporations with nothing to the local community.

When I lived and taught in Ohio, these kind of deals cost the school district that I taught in about 10% of our projected budget (alomsot 2 million a year) so we cut teachers while Walmart and others raked in huge profits.