States’ Incentives for Businesses May Not Produce Results (NY Times)

Incentive programs in Oklahoma, West Virginia amount to a third of the states’ budgets.

States and local governments provide companies with more than $80 billion a year in tax incentives, but those incentives don’t necessarily provide the results governments are hoping for, according to the New York Times.

When General Motors announced a list of plant closings in 2009, at least 50 of the locations on the list were in states and towns that had provided the company with incentives. The article cites Ypsilanti, Mich., which paid General Motors more than $200 million over the years only to have the car maker close both its factories in Ypsilanti. The town is now suing GM.

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