To the editor:
Are tax abatements giving away the store? Why are footloose firms taxed less than firms attached to Lawrence?
Some city commissioners say "50 percent of something is better than 100 percent of nothing." True, but 100 percent of something would be even better. Their slogan begs the question: Are abatements actually needed?
On paper, Lawrence has a pretty good policy. It says we give abatements only when necessary to attract a firm. And only when the firm will pay more in taxes than it costs in services. And only when the firm brings in good jobs. In practice, every eligible firm says abatements are just what it needs to be attracted to Lawrence. And we don't check up on it. That basically means we are bribing some of those firms to lie.
In practice, we are actually abating some firms that promise low wage jobs. And even when firms promise good jobs, we don't check up on it. In practice, some abated firms are paying less in taxes than they cost in services, according to the KU fiscal impact model. Maybe the slogan we really need is: "0 percent of nothing is better than 50 percent of a net loss." In other words, either fix the policy, or eliminate abatements all together.
David Burress,
Lawrence
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