Subsidies - Good News and Not So Good

Subsidies - Good News and Not So Good

First, the good news, at least in New York state: Giveaways of state tax dollars to businesses, from retail Hollywood movies, are finally being challenged by a Republican politician. Seeing the party of business raise this issue is good news indeed.

A new state law that took effect May 1 is supposed to stop subsidies for
retail from malls to car dealers to a suburban Buffalo donut shop.

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The not so good news is how the attack on these film industry subsidies are being framed.

Assemblyman Kieran Michael Lalor, who represents a Hudson River Valley district, is asking why money is going to films and television shows when
aid to the developmentally disabled has been cut.

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We need to have a debate about subsidies to business (and households making three hundred large per year)...

But we also need to keep in mind that subsidies are just one way "elites" benefit from the system and their benefits, as well as those going to the affluent, are not unrelated to falling wages, lack of jobs and the costs of caring for those who cannot support themselves.

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View David Cay Johnston's opinion in its entirety on the taxanalysts® Blog.

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