Statement of Greg LeRoy
Executive Director, Good Jobs First
Author, The Great American
Jobs Scam
5/16/2006
“This is a narrow, technical victory for
DaimlerChrysler only on standing. It is also a lost opportunity for the U.S.
economy. A positive decision could have fostered a fresh new debate on how
to curb the economic war among the states and get back to basics such as
skills and infrastructure that really do create good jobs. The Supreme Court
did not rule on the Commerce Clause issue at the heart of the case. But
sooner or later, it will undoubtedly need to decide whether discriminatory
tax breaks impede interstate commerce, as the Sixth Circuit said they do.
“This issue is not going away. By every measure I see, there is growing
public concern about the need to rein in wasteful corporate tax giveaways.
Increasingly, people understand that globalization makes these
state-versus-state episodes more irrelevant and wasteful than ever. More
states and cities are enacting economic development safeguards such as
disclosure, clawbacks and job quality standards. Local organizing for
community benefits agreements continues to grow. Attendance at smart growth
conferences is surging, and more people are learning that regional
cooperation for economic development needs to replace the war among the
suburbs. People understand that the Baby Boom generation’s imminent
departure and our nation’s decaying infrastructure beg for reinvestment in
public goods and services instead of corporate tax giveaways. They also
realize that massive federal deficits mean federal aid for economic
development will continue to decline, forcing states to do more with less.
“I admire the plaintiffs and recall their outrage after hearing the case
argued on March 1st. How dare anyone say we were not harmed and therefore
lack standing, they asked. One lost a small business to eminent domain.
Another has three grandchildren suffering in public schools impoverished by
corporate tax breaks.”
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