Corporate Welfare in New York

Larry Kudlow is appalled at New York City's plan to subsidize a new corporate headquarters for none other than investment banking powerhouse Goldman Sachs.

According to reports, New York will provide roughly $1.6 billion in special tax exempt bonds, a sales tax exemption on building materials, another break on energy costs, and still more tax breaks for retaining 8,000 or 9,000 jobs that were never in question of being lost...

Goldman is a great global bank. It is also highly profitable and if it wants to build a new headquarters, than go right ahead and build it. But not by feeding at the public trough.

Why not give these tax breaks to small and medium businesses throughout the city? Or better yet, why not reduce exorbitantly burdensome tax rates for all New York taxpayers?

I agree - does anyone really believe that Goldman would give up its New York address for one in nearby Hoboken because of better tax treatment? Come on...