Smarter Way For Government To Distribute Free Money

I've just read an article where Camden is going to give away nearly $2b in tax breaks for business structure. This follows one of many I've come across.

When developers and businesses get their hands on this money it usably results in each moving from one area to the next handout. It also allows them to shed employees from their old location so they can hire lower cost new employees to the next place they are going. This allows them to further enhance their profits rather then grow their business. This also impacts the area where they came from. All this does is favor one area over another doing little to increase the economy overall. In other words, simply rearranging the deck chairs.

The side effect is while they are making one area poorer they're gentrifying the other. Thus making it less affordable for longtime citizens who live there. I think these tax grants should be given directly to lower income people instead. Here a few examples of how it could be done. (1) Presently government owned senior housing is causing taxpayers to struggle paying for them. Most seniors end up in these because they are forced out of their homes due to being no longer be able to afford them. It sure would be nice to give the lower income seniors property tax breaks. I'm certain another three of four thousand a year would make all the difference. Plus without a doubt every nickel would be spent rather then saved. Thus stimulating the local economy directly. I'd suggest offering similar property tax breaks to low wage earners struggling to make ends meet.

This benefits in two ways. (a) If government wants to truly help local business grow it needs to increase their customer base. Face it a company (no matter how many tax breaks) won't hire one single employee more then it needs. The greater customer demand-- the more employees they will hire. (b) This doesn't contribute to gentrification causing people to abandon their neighborhoods causing further decay to nearby areas.

(2) I'd also suggest using a part of these grants to help struggling school districts. This would benefit in three ways. (a) This would help keep property taxes competitive for those shopping around for a new home not wanting to pay higher tax rates then elsewhere. (b) Parents with decent incomes whether renting or buying are looking at the schools their kids would attend. The better the schools, the better chance we have of attracting middle income families. (c) People who have decent incomes will spend money improving their home. Which raises it's value. In turn generating higher tax revenues in itself.

(3) Far as I'm concerned taxpayers grants should never be used for commercial investment interests-- PERIOD. Most importantly these federal, state and local commercial grants and tax breaks come when nearly everyone of them are showing record deficit spending. It's totally irresponsible to hand out money to commercial interests when various governments can't even afford their own bills.