#mainstreet

aspen, colorado 1976

the jerome

Well I'd stand outside at closing time...

Let’s go see..

In fact, a key driver behind the rise of big-box retailers is the extensive government support they receive, including subsidies and billions of dollars to fund their expansion, says Stacey Mitchell, co-director of the ILSR. In an episode of the Strong Towns podcast, she explains how companies like Walmart or Target convince local officials that they’re bringing jobs and financial benefits to the area often in exchange for tax breaks and subsidies to cover the cost of land or construction. Unfortunately, many local governments are too quick to take the bait.

Walmart, for example, received subsidies for one out of every three stores it built, pocketing over a billion dollars from local governments. A Dollar General in Haven, Kansas demanded the taxpayers of the town of less than 2,000 inhabitants to foot the store’s $72,000 utility bill on the promise of jobs and tax revenue. That’s how much it cost to run Haven’s public library and pool for the year. The town caved and subsidized approximately half the bill.

ILSR also discovered that large corporations benefit from tax loopholes, enabling them to avoid paying income taxes in about half the states they operate in. Meanwhile, small businesses don’t have that luxury—they pay taxes on 100% of their earnings.