In order to attract and retain small and big business alike, it has long been a tactic by states and local governments to offer tax breaks – just ask Elon Musk who has been a happy recipient of taxpayer generosity over the years. However, as times have got touch in Obama’s “recovery”, government subsidies of at least $50 million have plummeted by 70% Bloomberg reports.
As an example, tax breaks for companies such as Boeing, IBM, and Toyota were part of $17 billion from state and local governments in 2013. In 2014 that number dropped to $7 billion, and last year plummeted to just $4.8 billion.
It must be noted that a tax break is not a subsidy but we take the author’s point.