When the previous DALATC program expired last year, Missouri taxpayers benefitted. According to the Missouri Accountability Portal, the primary beneficiary of that DALATC program has already received approximately $43 million from it in tax credits for a project in North Saint Louis. That money is in addition to a $390 million Tax Increment Financing (TIF) subsidy package that the City of Saint Louis approved for the exact same project. That is a total subsidy approaching a half billion dollars. When, and how much, is enough? The subsidy game is now a part of the mindset of business in Missouri. The legislature did the right thing by refusing to extend this tax credit last year, and that discipline would continue to benefit Missouri taxpayers going forward.
When the state spends millions of dollars on one potential development, it is taking a huge risk with taxpayers’ money. The state is risking that one developer will transform North Saint Louis and remove all of its societal problems. How can we trust that the bet will pay off? Who is on the line if this project fails?
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