Night Owls, a themed open thread, appears at Daily Kos seven days a week
There are lessons here for every city, county, and state that has seen companies take tax credits provided to them in hopes of creating or maintaining jobs and run away, leaving locals to pay the tab.
Dan O’Brien at The Business Journal of Youngstown, Ohio, in collaboration with Pro-Publica writes—Ohio Just Ordered GM to Repay $28 Million in Tax Breaks for Closing the Lordstown Auto Plant:
The state of Ohio on Monday ordered General Motors to repay $28 million in public subsidies for reneging on its promise to keep its sprawling Lordstown plant open.
The automaker, which had pledged to keep operations going until 2040, closed its assembly plant last October, drawing criticism from elected officials in both political parties, including President Donald Trump. At the time, GM cited the collapsing market for small cars; Lordstown produced the compact Chevrolet Cruze.
But state officials said the closure violated the terms of two economic development agreements GM signed with Ohio more than a decade ago. Between 2009 and 2016, the company received more than $60 million in tax credits to maintain operations at the massive plant, which employed over 4,000 people.
On Monday, the Ohio Tax Credit Authority said GM must pay back roughly half of those tax benefits, as well as provide an additional $12 million in community support in the Mahoning Valley, the economically depressed region where the plant was located. The funds are targeted for education and job training at Youngstown State University and other colleges, community programs and infrastructure projects. […]
Although the clawback falls short of the total $60.3 million that GM received, the state’s action is significant, said Greg LeRoy, executive director of Good Jobs First, a nonprofit agency that tracks corporate subsidies and violations.
“The $28 million still stands as the biggest clawback we can point to” nationwide, he said. Yet he believes that the state should have pursued a total refund. “It’s kind of a two-thirds of a loaf for taxpayers.” […]
“Historians have a word for Germans who joined the Nazi party, not because they hated Jews, but out of a hope for restored patriotism, or a sense of economic anxiety, or a hope to preserve their religious values, or dislike of their opponents, or raw political opportunism, or convenience, or ignorance, or greed. That word is ‘Nazi.’ Nobody cares about their motives anymore. They joined what they joined. They lent their support and their moral approval. And, in so doing, they bound themselves to everything that came after. Who cares any more what particular knot they used in the binding?” ~~A.R. Moxon (2017)
At Daily Kos on this date in 2012—Welcome to the culture war against teachers, coming to a theater near you:
The campaign against teachers is special, and worth paying attention to. It’s not like workers in general get much respect in our culture, at least not beyond vague lip service that only ever applies to the individual, powerless worker not asking for anything. And janitors, hotel housekeepers, cashiers, and a host of others could fill books with the daily substance of working in low-status professions, I’m sure. But right now, teachers are the subject of a campaign heavily funded and driven from the top down to take a profession that has long been respected by the public at large and make the people in the profession villains and pariahs, en route to undercutting the prestige, the decision-making ability, the working conditions, and, of course, the wages and benefits of the profession as a whole. What we’re watching right now is a specific front in the war on workers, and one with immense reach through our culture—and coming soon to a movie theater near you if it’s not already there, in the form of the poorly reviewed parent trigger drama Won’t Back Down.
(That it’s a war not just on teachers but also on the workers of the future and on the government just sweetens the pot for many of the people waging the war.)
On today’s Kagro in the Morning show: Greg Dworkin is back, just in time to wrap up that… thing… that was on TV last night. Parscale’s still in the news, this time over the Trump campaign’s finances.. Speaking of which, Trump’s broke campaign is now using government funding for ads.