Communities Ask Corporations For ‘Free Money’ Back

In another sign that the U.S. economy is still in the tank, the Associated Press reported that communities across the country want corporations to give back their “free money.”

 WASHINGTON, D.C. — In another sign that the U.S. economy is still in the tank, the Associated Press reported that communities across the country want corporations to give back their “free money.”

This “free money” came in the form of tax breaks on the condition of bringing jobs into their areas.

But in places like DeKalb, Ill., Target Corp. has not lived up to its promise of creating 500 jobs; the company created only 434 last year.

So the community — the city, county, and school district — has increased taxes on Target to $600,000, half of which is already headed to the school district.

A spokesperson for Target said that it was “disappointed” by the tax bill, according to the AP, but could live with the decision.

The city of DeKalb itself has a shortfall of $2 million in revenue.

The political will is such for enforcing these “clawback” provisions also because of the public’s distaste for taxpayer money headed to Wall Street giants such as Goldman Sachs.

Clawbacks have increase in Texas to nine in 2008 from seven across the previous three years with regard to money given from the Texas Enterprise Fund.

In the U.S. tax breaks are given to corporations upwards to $60 billion a year, according to Good Jobs First.