New York State spent $2.8 billion on state and local tax breaks for businesses in the five years 2007 through 2011, State Comptroller Thomas DiNapoli said Tuesday in a new report.DiNapoli says that money generated more than a million jobs at an average cost of about $2,700. That sounds like a pretty good deal for taxpayers. If only it were true.But the fact is that New York State did not add a million jobs during those years. It lost jobs.
DiNapoli gets his "performance" data from reports filed by the 113 local Industrial Development Agencies, or IDAs, that hand out tax breaks. These agencies generally charge applicants a 1% fee on the value of their deals, which provides them with a continuing stream of income -- so long as they keep approving more tax break deals to generate more fees.
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