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Tax increment financing

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  • David Reed
    What is the real gen on tax increment financing which the Conservative Mayor of London is trying to get accepted for the metropolis,citing the US as somewhere
    Message 1 of 4 , Dec 1, 2009
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      What is the real gen on tax increment financing which the Conservative Mayor of London is trying to get accepted for the metropolis,citing the US as somewhere  it has worked?

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    • Dan Sullivan
      ... It s a thinly disguised system of corporate welfare, and an invitation to corruption, as interest who support the incumbent regime are allowed to divert
      Message 2 of 4 , Dec 1, 2009
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        On 1 Dec 2009 at 16:00, David Reed wrote:

        >
        > What is the real gen on tax increment financing which the Conservative
        > Mayor of London is trying to get accepted for the metropolis,citing
        > the US as somewhere it has worked?

        It's a thinly disguised system of corporate welfare, and an invitation to
        corruption, as interest who support the incumbent regime are allowed to
        divert tax revenues to paying off the construction of their own
        developments, or construction of infrastructure tailored specifically to
        their own developments.

        See:

        http://www.cooperativeindividualism.org/sullivan_dan_lvt_vs_tifs.html

        -ds
      • Edward Dodson
        ... Dan Sullivan responded: It s a thinly disguised system of corporate welfare, and an invitation to corruption, as interest who support the incumbent regime
        Message 3 of 4 , Dec 1, 2009
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          David Reed wrote:
          > What is the real gen on tax increment financing which the Conservative
          > Mayor of London is trying to get accepted for the metropolis,citing
          > the US as somewhere it has worked?

          Dan Sullivan responded:
          It's a thinly disguised system of corporate welfare, and an invitation to
          corruption, as interest who support the incumbent regime are allowed to
          divert tax revenues to paying off the construction of their own
          developments, or construction of infrastructure tailored specifically to
          their own developments.

          Ed Dodson here:
          Another bit of market engineering occurs when the TIFs are accompanied by
          property tax abatements. The effect is to allow a developer to raise the
          selling price of a residential unit because -- with a much lower monthly
          escrow for property taxes -- the buyer can "afford" to carry a greater
          amount of mortgage debt. What happens when the tax abatement expires is not
          really examined in terms of default risk. It is assumed that the
          buyer/borrower will sell out before the abatement expires, or their
          household income will have increased sufficiently to carry the full annual
          property tax obligation.
        • roy_langston1
          ... Worked ? Sure it has worked -- to shovel money into landowners pockets. The USA is not exactly a model for land policy recently. Tax increment
          Message 4 of 4 , Dec 1, 2009
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            --- In LandCafe@yahoogroups.com, David Reed
            <dbcreed@...> wrote:

            > What is the real gen on tax increment financing
            > which the Conservative Mayor of London is trying
            > to get accepted for the metropolis,citing the US
            > as somewhere it has worked?

            "Worked"? Sure it has worked -- to shovel money
            into landowners' pockets. The USA is not exactly
            a model for land policy recently. "Tax increment
            financing" just means "robbing the community for
            the unearned profit of landowners."

            -- Roy Langston
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