Read original article: Shakopee is rethinking tax incentives for prospective employers
Yes, giving financial breaks to new businesses (that are usually huge companies not needing any subsidies) in a municipality shifts too much of the tax burden onto existing businesses (often small) and local residents. Thankfully, Shakopee is looking at ways to curb this practice.
It just makes sense to have some rules that hold these companies accountable for their projections. Otherwise, it’s a free-for-all for the big guys and a great expense for the small guys.
Obviously, state-of-the-art facilities, increased local employment, and an improved city economy are goals that every city should strive for. But this does not need to be achieved by unrestricted tax abatements. Having some rules just makes sense. It’s a step in the right direction.