On my BlogTalkRadio.com radio show, I spoke with Jon Greenbaum of Metro Justice. While discussing his latest article in the City Newspaper, I hit upon an important topic of discussion on the whole issue of tax give-aways in New York. At least, it seemed important enough to me to write it out.
When most people think of property taxes, like most issues, we tend to think of our own situations. For private citizens, the single largest investment they have is going to be their house, and as much as a third of the mortgage payment each month will be taxes.
This is not the case for corporations or even businesses in general. Of all the operating costs for your average mid-sized to large corporation, the taxes they pay on the land they use are a trivial consideration. Jon’s article cites a figure of around 4 to 5 percent.
That is an important distinction to make for people, however difficult that may be. Because we tend to think provincially, even those people who disagree with Empire Zones and COMIDA practices – even if they say “give me the tax credit, not some damned corporation,” even if they say, “our schools need that money,” – still acknowledge the presumed notion that a tax break is a worthy inticement for corporate investment.
That notion is patently false. Despite it’s falsehood, it is axiomatic and serves to make arguments against Empire Zones weaker than they actually are, while at the same time, imparting a certain inevitability to the rationals for corporate tax cuts. After all, we need jobs in Upstate; we need to offer them something, don’t we? Don’t we?
It is, admittedly, a very nuanced argument to make, and even more difficult to reframe. Where is Jeffery Feldman when you need him? Perhaps a slogan-ish thought like “corporations counting pennies cost our schools millions,” would be illuminating for many people. At least, it might be the right frame of mind from which to argue the point.
