DC's Privates Stink
So when is a private financing plan not a good idea? Say, now, when it doesn't appear to actually save anyone anything.
One of the reasons private financing gained traction was to help eliminate the burden on businesses. Recall that they are assessed a ballpark tax that is a sliding scale based on the size of their company. The tax was projected to produce $14 million in revenue. The hope was that the Deutsche Bank plan would reduce the business tax to just $8 million.
Well, that was before Wall Street got their greedy meathooks involved. They want all $14 million dis-ir-regardless, because it's the most stable.
So now the city is giving up future revenue potential in turn for money today, but with no real benefit to anyone, other than being able to incorrectly point out to their economically illiterate constituents that the city isn't paying the entire thing.
What a deal! I'll take two!
One of the reasons private financing gained traction was to help eliminate the burden on businesses. Recall that they are assessed a ballpark tax that is a sliding scale based on the size of their company. The tax was projected to produce $14 million in revenue. The hope was that the Deutsche Bank plan would reduce the business tax to just $8 million.
Well, that was before Wall Street got their greedy meathooks involved. They want all $14 million dis-ir-regardless, because it's the most stable.
So now the city is giving up future revenue potential in turn for money today, but with no real benefit to anyone, other than being able to incorrectly point out to their economically illiterate constituents that the city isn't paying the entire thing.
What a deal! I'll take two!
posted by Chris Needham at
8:44 AM
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