Pass along a news tip by clicking HERE.

Monday, August 04, 2008

New York Lawsuit Challenges Corporate Welfare: Case Filed Today Seeks End To $1 Billion A Year In Business Subsidies

COLUMBUS (TDB) -- Forty six plaintiffs sued New York's governor and other state officials today in a move that challenges state economic development grants, loans and other financial assistance packages to private businesses. Some information about the lawsuit is here. The plaintiffs contend taxpayer money is being channelled into healthy corporations. Most states have similar economic development programs and efforts, including Ohio. They seldom come under legal attack. But the New York group is portraying its case as "the Mother of all lawsuits."


  1. Maybe it's a better system to have cash payments made by banks, chambers of commerce and other business associations instead of governments.

    Governments regularly offer tax abatements for economic development and expansion; the businesses should do the rest themselves.

  2. Westender --

    The businesses know they can get the money by threatening to move, downsize or not undertake a project. The government often acts out of what could be called a form of duress or extortion. It is sort of a shakedown scheme, but nobody pulls a weapon. The stadiums in Cincinnati were both subsidized for professional sports. Worthwhile projects? Is Ohio getting anything, really, from the Third Frontier investment?