MTA’s Looming Fiscal Crisis Sparks a Closer Look at Tax Exemptions and Incentives

At a time when the fiscal stability of the Metropolitan Transportation Authority (MTA) is at risk, both state and city granted tax exemptions and incentives have taken center stage. “In the 1980s when federal support for cities declined and the flight to the suburbs caused urban tax bases to wither,” economic development subsidies became widespread. However, according to an op-ed by the Citizens Budget Commission, although the intention of these programs is to retain and/or compete for businesses, there is a lack of evidence that “many of these dollars have driven substantial job or economic growth” since there is no ongoing tracking or oversight process in place to substantiate the investment gain or loss. It has been estimated by fiscal watchdogs that the city and state “dish out a combined $10 billion worth of subsidies every year — equating to the city foregoing “8% of total tax collections and the state 5% in the hopes that they will collect more in the long run.”

Source:    https://www.crainsnewyork.com/politics/new-york-tax-breaks-cost-residents-10b-annually

Source:  https://cbcny.org/advocacy/rigorous-data-should-show-where-incentives-work-best