Synopsis
The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation, written by Greg LeRoy and published in 2005, presents a critical investigation into how state and local economic development subsidies fail to deliver on their promises. LeRoy argues that state and municipal governments routinely hand out billions of dollars in tax breaks, cash grants, and infrastructure subsidies to major corporations under the pretense of creating local jobs, only to see those promises fall flat once the deals are signed.
The book details the deliberate tactics corporations and site location consultants use to pit cities and states against one another in high-stakes bidding wars. LeRoy demonstrates how businesses exploit this competition to extract massive financial concessions for facilities they often planned to build anyway. Furthermore, the narrative highlights how many recipient companies fail to meet their job-creation targets, pay sub-par wages, or even eliminate jobs through layoffs and plant closures after pocketing taxpayer-funded incentives.
Beyond exposing the flaws of the system, The Great American Jobs Scam examines the broader public impact, showing how corporate tax dodging depletes funding for essential community services like public schools, roads, and public safety. LeRoy concludes by offering concrete policy reforms aimed at restoring accountability, advocating for strict clawback provisions, transparent disclosure laws, and unified regional cooperation to end race-to-the-bottom subsidy wars.