Should DC Give LivingSocial $32.5 Million in Tax Breaks; Plus Revenue Forecast Explainer
Tomorrow, the DC Council will consider legislation that would give LivingSocial up to $17.5 million in corporate income tax breaks and $15 million in property tax breaks for keeping its headquarters in the District. District leaders need to make sure it is beneficial to both LivingSocial and the District.
The Council has two options: Keep the deal as it was sent from Mayor Gray with little guarantees for the District. A better deal would be for the Council to strengthen the bill with amendments in three areas: tying the level of subsidy to company growth and DC hires, adding clawbacks so if agreed upon targets are not met the District has a money-back guarantee, and creating mentoring and learning partnerships for DC businesses and youth so they benefit from LivingSocial’s tech expertise.
Which LivingSocial deal will our elected leaders buy? Click to view the deals.
Also, last Friday Chief Financial Officer Natwar Gandhi reported that there is no change in the revenue forecast since February. That means there is no additional revenue to add to the budget. Dr. Gandhi’s letter can be found here: http://newsroom.dc.gov/show.aspx?agency=cfo§ion=2&release=23485&year=2012&file=file.aspx%2frelease%2f23485%2fRevenue%2520Estimates%2520Letter_June%25202012.pdf