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The Cost of Jobs: What do taxpayers get for Tennessee business subsidies?

Posted on 06 April 2018 by admin (0)

amazonClarksville, a military hub north of Nashville with 150,000 residents, has awarded multimillion-dollar property tax breaks to large corporations, including Google, without publicly disclosing the value of the subsidies or tracking hiring at those companies.

“It’s a verbal check,” said Mike Evans, executive director of the Clarksville-Montgomery County Industrial Development Board. “Do we have a piece of paper or a form filled out? We don’t. But it’s a system.”

More than $2.5 billion in subsidies such as grants, tax breaks and tax credits are given to businesses in the state each year, according to an analysis by the W.E. Upjohn Institute for Employment Research.

An investigation by the largest four media organizations in Tennessee — The Tennessean, The Commercial Appeal, Knoxville News Sentinel and (Chattanooga) Times Free Press — found statewide that many officials and agencies do not track or disclose the number of jobs created by subsidy deals.

That lack of accountability means taxpayers and leaders can’t effectively decide whether individual subsidy deals are a good investment or if the money would be better spent on education, infrastructure or another jobs program.

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