"We will roll out the red carpet as much as we can (but) they are going to honor the contract," said Brendon Gallagher, an alderman in DeKalb, Ill., where Target Corp. got abatements from the city, county, school district and other taxing bodies after promising at least 500 jobs at a local distribution center.
So when the company came up 66 workers short in 2009, Target got word its next tax bill would be jumping almost $600,000 -- more than half of which goes to the local school district, where teachers and programs have been cut as coffers dried up.
Municipalities, looking to patch gigantic holes in their budgets, attempt to raise taxes on corporations already cutting back as consumption contracts. Corporations that cannot afford the higher taxes, like underwater homeowners, will walk away. This is nothing more than the "Formula" in action.
Source: finance.yahoo.com
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