Corporate tax breaks cost U.S. schools billions of lost revenue: report

According to a report that was issued on Tuesday, after the secretive quests of the Amazon.com Inc so as to find a site for the second headquarter of the company the corporate tax subsidies are again the spotlight because they are costing huge for the American public schools.

The public schools had nearly lost $1.8 billion across the 28 states in the fiscal year 2017. This was via the tax incentives over which maximum number of schools had no control.

According to Good Jobs First which a think tank of Washington that is left leaning, whose report was released recently, the most affected states which accounted to 10 in number could hire more than twenty eight thousand new teachers only if they were capable of using the revenues which was lost.

This report by the Good Jobs First comes amid the increased scrutiny of the taxpayers for such deals in the wake of the yearlong search by Amazon all over the nation for its second headquarter.

Last month, Amazon declared its decision of building two new headquarters for $5 billion each in Virginia and Arlington of New York City. The company also stated that it will be hiring about 50,000 people as staff altogether.

The search by Amazon was conducted secretly yet the search was spectacle for the public.

This in turn pitted the states in a bidding war thereby raising questions regarding the transparency as well as the requirement of the subsidies for a company which is run by the richest man in the world, Jeff Bezos.

So as to lure the companies, the states have used these as abatement s and also to prevent them from leaving the country and to encourage them to expand.

Source: Reuters, WashingtonPost