Some of your tax dollars are going to a company researching cancer medicine in Wellesley.
Every year, $2.26 billion goes to corporate subsidies in Massachuestts, according to a recent New York Times study looking the money spent by local governments in grants and tax breaks. Nationally, $80.4 billion goes to 1,874 programs.
Grants and tax breaks make up some of what are referred to as subsidies. An accompanying NY Times piece says the study painted a picture of town and state officials looking to create jobs by creating subsidies, i.e., providing some kind of assistance companies to entice them to the town.
Of that $2.26 billion, some of it is coming to Wellesley: in 2010, $140,000 was given in the form of a corporate income tax credit, rebate or reduction to a company called NormOxys--a biotech company working on small-molecule drugs, most notably an anti-cancer drug called OXY111A.
In context, that $140,000 is comparatively small: Liberty Mutual earned a $45 million tax break from the state that same year. The smallest was Mabbett & Associates Inc. of Bedford's 2011 break of $14,730.
The NY Times study shows Massachusetts as a big contributor, but not the biggest. OF the $80.4 billion in breaks, the state giving the biggest breaks is Texas, with $19.1 billion going to companies and programs there. The smallest: South Dakota's $27.8 million.
What do you think? Some of your taxpayer dollars are going to a company researching cancer cures. Is that worth it?