Economist Tells State To Stop Subsidizing Big Retail
"An economist from the Federal Reserve Bank in Minneapolis told the state House Tax Committee that the best economic policy is to keep taxes low for all businesses and to refuse preferential tax treatment for a few."
"'It should raise red flags to legislators when businesses are coming to you for subsidies,' economist Art Rolnick said."
"The Mall of America is asking Bloomington and the state for $222 million in tax subsidies to help finance a $1.8 billion expansion. In return, mall representatives predicted the project would create 7,000 construction jobs and 10,000 permanent jobs and would generate $53.8 million a year in new state taxes."
"The economist warned that granting tax breaks to a few big projects would shift tax burdens onto smaller businesses and encourage other private firms to seek public subsidies."