State corporate subsidies are double that of pension costs.

The Washington Post makes an interesting point.

Fred Klonsky

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Washington Post:

It’s easy to cast about for other big pots of money to raid when these kinds of shortfalls arise, and no politician wants to raise taxes. There is, however, another big expense that tends to get overlooked: The tax breaks states already hand out to corporations, on the theory that they won’t stick around without them. In Pennsylvania, they amount to about $3.9 billion per year — several times the $1.4 billion that the state needs to contribute in order to make good on its pension obligations.

That means companies all around Lincoln High avoid taxes through offshore bank accounts, stashing income money in other states because of a failure to adopt “combined reporting,” locating in low-tax “opportunity zones,” and taking advantage of credits for research and development — while kids go without prom and after-school programs because the money isn’t there to fund them.

And it’s…

View original post 86 more words

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