Abating Our Future: How Students Pay for Corporate Tax Breaks
Type
Policy Brief or Report
Year
2021
Level
School District, State
State(s)
Louisiana, Missouri, New York, South Carolina, Texas
Policy Areas
Economic Justice, Education
Public school students in the U.S. suffered poorer schools—and local and state taxpayers paid higher taxes—in 2019 due to corporate tax breaks; economic development tax abatements given to corporations cost public school districts at least $2.37 billion in foregone revenue in FY 2019. This report presents case studies from schools in Louisiana, Missouri, New York, South Carolina, and Texas where schools are losing significant revenue to tax abatements. Additionally, this report makes recommendations to these states and offers suggestions to the Governmental Accounting Standards Board (BASB); these recommendations include capping the share of each locality’s property and sales tax base that can be abated in the name of economic development, giving school boards control to opt in or out of tax-break deals, requiring all governments that are making abatement agreements to report the costs of such deals to all affected jurisdictions, and more.