Imagine if all industries were subsidized with capture process.
Cronyism is still alive and well, and Detroit interests still have their hands out. And maybe it’s not JUST the developers? Detroit’s high taxes, and expensive operating environment has created impediments to natural growth.
Years after Dan Gilbert took money from taxpayers to move his employees into Detroit where they would pay a new income tax, and endure travel challenges, he want to see more of the bottom of the taxpayer purse through capture strategies. And he has cheerleaders.
The Detroit News has opined in favor of taking money from Michigan families and giving it to big developers to subsidize otherwise unprofitable real estate projects. The News wrote:
“In Detroit and other older Michigan cities, rents are still not high enough to fully offset construction costs without incentive packages.”
If the News extended the same logic to its own situation, we might see something like this in a future editorial:
“In Detroit and other old two-newspaper towns, subscription and ad rates are still not high enough to fully offset continuing operations without incentive packages. If we were to get subsidies captured from the taxes paid from our employees, our success would be guaranteed, and [those] taxes would increase!”
Just think of the page rent decreases it could offset!