This Article examines the emergence of the problem of corporate welfare, and identifies and discusses various legal solutions. It identifies state and local governments, in conjunction with unions, workers and community organizations, as the appropriate actors to reform a system which has become an abuse of public trust and the general welfare. Part I of this Article examines the emergence of the tax abuse phenomenon and documents its impact on local economies in this country. Part II discusses the legal scheme which frames the various legal strategies that have been employed by communities to challenge subsidy arrangements. Part III identifies several solutions, including legislative initiatives that require that tax subsidy arrangements be subject to express, written, contractual agreements. This Article concludes that greater accountability of the tax incentive system is needed to provide the kind of efficiency necessary to allow these foregone tax dollars to instead be used wisely.
Kary L. Moss, Esq.,
The Privatizing of Public Wealth,
23 Fordham Urb. L.J. 101
Available at: http://ir.lawnet.fordham.edu/ulj/vol23/iss1/3