!!PV TV TONIGHT, LIVE, @ 7 P.M. … plus … GAETANI DECLARES FOR MAYOR TOMORROW … AT 10 CENTS ON THE DOLLAR, TAX CREDITS ARE LOSERS FOR THE TAXPAYING ‘LITTLE GUY’
By DAN VALENTI
PLANET VALENTI News and Commentary
!! PLANET VALENTI TELEVISION, live tonight, Channel 16 beginning at 7 p.m.!! Also, in a continuance of “Back to the Future,” Peter Marchetti joins the mayor, Linda Tyer, and Peter White in announcing a run for office. They are running, respectively, for: at large, mayor, mayor, and at large. Those are the “glory” seats. Here’s hoping for two things: (1) Fresh faces and (2) lots of ward candidates. Incidentally, tomorrow the public shall hear from the ultimate OUTSIDER, Craig Gaetani, as he declares for mayor. The press conference takes place at his home at 1098 West Street in Pittsfield. Press and public are welcome.!!
(FORTRESS OF SOLITUDE, THURSDAY, APRIL 2, 2015) — Gov. Charlie Baker, stunned by the giant spit sandwich left to him by Gov. Deval Patrick in the form of a $1.5 billion deficit, has put everything on the table as he looks for ways to stop the hemorrhaging. Good luck with a legislature overwhelmingly Democrat, but that’s not the point.
The point is that he’s making the effort. For example, Baker is mulling an end to the state’s costly habit of giving tax credits to Hollywood millionaires and billionaires. To lure the film industry to the Bay State, taxpayers subsidize large chunks of the movie production costs. Advocates of the program cite the glamor and allure of the flicks, the jobs created, and the effect on tourism.
Yes, it’s the dreaded “economic engine.”
‘Economic Engine’ All Right: Sucks Money from Taxpayers & Puts It in Pockets of The Suits
Baker’s team, however, has determined that every dollar taxpayers spend in tax credits to Hollywood’s rich and beautiful people takes in only 10 cents. For taxpayers, tax credits in general generate a similarly bleak ROR (rate of return). Some economic engine: spend a buck and get back a dime. No wonder why the city of Pittsfield is in love with handing out tax credits to eager “developers” like it’s so much candy on Halloween. What windbag politicians call an “economic engine,” what business calls a “quasi public-private partnership,” Mary Jane and Joe Kapanski call “a tax hike.”
The public pays, and the privates sip Dom. Raising revenue is a zero-sum game. Here’s how it works:
* If the amount of taxes a community raises is X dollars, and
* If Developer A receives tax credits equal to Z dollars, and
* If the amount of taxes a government raises remains the same, then
* Mary Jane and Joe, i.e., The Little Guy, has to pay X+Z dollars.
Tax credits mean The Little Guy gets screwed. Any profits generated by the credits go to the recipient. Any losses are eaten by taxpayers. Great deal, eh? No wonder politicians such as deadbeat Mayor Daniel Bumstead love tax credits.
Pittsfield’s Long List of ‘Economic Engines’: A Litany of Failure for ‘We The People’
That’s how it’s worked in Pittsfield for the endless line of “economic engines” that have helped push the city close to bankruptcy, an endless list that includes EV Worldwide, Workshop Live!, Spice, The Beacon Cinema, the Patriot Hotel and Resort, Nuclea, the soon-to-open Hotel On North, the Howard Building condos, and the proposed Berkshire Innovation Center and construction of a new Taconic High School.
[ED. NOTE: Incidentally, THE PLANET is continuing to research our story yesterday, in which we pointed out the apparent conflict of interest that may keep three councilors from voting on the THS spending ($120 million in new debt). As we reported, if you are a voting member of an entity (SBNC) that is requesting public money for such a project at THS, you cannot at the same time also sit on the entity that will have to rule on the request (Pittsfield City Council). John Krol, Kathy Amuso, and Melissa Mazzeo each sit on the SBNC (the group requesting public money) and the council (the appropriating authority of public money). Our contact with state officials convinces THE PLANET that it is increasingly likely that should Krol, Amuso, and Mazzeo vote on the $120 million bonding plan (all three are huge supporters of the construction project), their votes will be challenged and the state will subtract their votes from the final tally. It isn’t certain which state authority would have jurisdiction. It would be among the Attorney General, the Inspector General, the Secretary of State, and the Ethics Commission. Stay tuned for further developments. This is a story with enormous financial implications for the future financial health, such as it is, of the city of Pittsfield. Of course, none of the mainstream media found the story, but that’s why this area has THE PLANET.]
Time for the City to Take Stock
Getting back to the long list of ‘economic engines’ Pittsfield has embraced over the yeas, the one thing they have in common is the public’s participation as unwilling venture capitalists in what should be 100% private investment. The tax credits benefit the private investors and leave Pittsfield taxpayers with the bill.
This largesse, as it’s been practiced in Massachusetts, typically comes with scant oversight and accountability. The politicians dole out the money, love the headlines in the mainstream media that refuse to pose the tough questions, then forget about ensuring that the recipients of the tax credits fulfill their end of the bargain. We’ve seen it time and time again. It’s only because of the overall disgust the general public has with local politics and politicians and the ensuing apathy that The Suits keep getting away with this form of legal theft.
For THE PLANET, Baker’s findings on the film tax credits suggests that Pittsfield do the same. The city needs to take scrupulous inventory on every extant tax credit program, to make sure the recipient benchmarks are being met. If not, it must take action. The city also should abandon or greatly curtail the discriminant issuance of these money losers.
Ten cents on the dollar is not a good deal, even in Pittsfield. Even the mayor can see that.
Right?
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“Sweet Dreams, baby. Sweet dreams, baby. Sweet dreams, baby. How long must I dream?” — Roy Orbison, “Dream Baby,” (1962).
“OPEN THE WINDOW, AUNT MILLIE.”
LOVE TO ALL.
At least when Hollywood decides to film a movie in Pittsfield, the permitting process has been streamlined to a one stop shop on 100 North St.
Movie permits will be approved with lightning speed and as Dan Bianchi says, “this could be a real money maker for the city of Pittsfield”.
After a few years, this move will have only cost taxpayers 1/2 a million dollars. What a bargin!
Rumor has it that THE GENERALISSIMO will be showing up at City Hall at some point to get a permit to make a documentary about Pittsfield.
“Tax credits” in Pittsfield is code for “gift to connected friends”. Nothing more and nothing less.
It does not matter if those three councilors votes on the school are cancelled because the other 8 will all vote for it. Which among them would dare stay in Pittsfield if they upset the 120 million dollar apple cart? From what i have seen none of them has balls that big. Forgettaboutit people you have a new school coming and there is not a Goddamn thing you can do about it.
And… You are right. It does not matter if you show up….for ANY Meeting in Pittsfield. Citizens are not heard, and the Open Mike Session in the Council Chambers is a total slap in the face. Watch the body language of the Council. Clean Sweep of Pittsfield Government is needed.
still nothing ward 1
Of course tax credits for the wealthy don’t work. They are all part of the trickle down economics theory, which many, including the first president Bush and Ross Perot, called voodoo economics. One thing is for sure, if you give a rich person more money one thing happens – they keep the money and become richer.
B. Clairmont and J. Lothrop are bailing because both will vote yes on new Taconic, assuring them they wouldn’t get back in if they ran because most voters will not vote for anyone who votes yes. It’s the easy, less painful way out, instead of a embarrassing loss at the polls.
Yeah, and LOw plays the Home Alone card for an excuse. But with all that being said, I want to thank Melissa Mazzeo, like her or not, for taking the City Council Presidency from him. Thank you Melissa.
You wonder why they aren’t running for reelection? Just having idiots like some of you blogging rotten things about them is enough to make no one want to run
If that’s all it takes to get them out, then by all means blog away. Thank goodness for PlanetValenti.com.
You won’t the truth anywhere else.
Calling posters on here idiots? You belong on Topix.com
If only the people currently on the council and in the mayors office were that sensitive that not being liked actually bothered them. The problem is that they are insensitive to what the people who put them in office really want. They don’t care. Taxpayers are saying enough is enough. The people running the government right now in Pittsfield could care less about rising taxes, a school system that wants more and more money each year, and the lack of jobs. They give themselves raises and literally laugh all the way to the bank. This is not good government and why should the public not talk and complain about their insensitive behavior?
someone recently told me that City Hall at 100 North St. closes for permits at 3:00PM and closes at the Fenn St. City hall at 4:00PM. Is this correct?
If so….that’s really “customer friendly”.
That is totally correct. The electrical and plumbing close even earlier 10:00 am.
Thank you, Guess What…..So unlike the private sector that puts in a full day. Perhaps the new administration (Tyer?) can change that…..Even one day a week open until 6 PM to accommodate real workers!
Innocent kid tased to death in Albany area.
Don’t really understand the big decision for the council. They can state that they are for the new school,and vote it down because they want the people that are writing the check to vote on it. A politicians dream, stand on both sides of the fence. What are the pro-120 million dollar school people afraid of. If it’s such a great idea, it will pass. Dan is there a phone # for SBA so people good voice there concerns.
Let’s get rid of all of the progressive Democrats in Pittsfield and government will start running smoothly again. The progressive Democrats in Washington are ruining the country and the local progressives here in Pittsfield are no better. When Linda Tyer proudly announced that she is a progressive, I knew I will not be voting for her. The progressives have never done anything good for this city or this country and they are all about social engineering, high taxes, and creating huge gaps between the rich and the poor. They are supposedly all about trying to help the poor, but the poor are doing worse than ever. It’s all a ruse for them to get power. You will never see the rich progressives give away more than half of their income as some of their followers want the poor to do. This makes their whole philosophy a bunch of hypocrisy!!!
Yeah “progessive” worries me too, it’s a code word for “extreme liberal” but you know what? Thats what the suits want so thats what they get.
B. Clairmont and Linda Tyer have recently been seen out together and word is that it is not just a professional relationship.
.
Perhaps he’ll be a very close adviser to her as she makes her run for the corner office
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Who the hell cares,it’s their own life Gio . I care about nothing is getting accomplished by this Mayor and he gives himself a raise to boot.while I struggle to make a living .When people have nothing to offer they attack and defect attention off themselves.
Pittsfield should open a Hooters restaurant. Then a hot Hooters waitress can run for Mayor. She would get elected, too.
This is your response to a female candidate, Jonathan? Really disappointed.
Pittsfield’s areas of growth are people with social problems. Teen pregnancies and welfare caseloads are growing in Pittsfield. Truancy and high school dropouts are growing in Pittsfield. Job loss and unemployment is growing in Pittsfield. Violent crime among youth is growing in Pittsfield. Poverty and the underclass is growing in Pittsfield. Corrupt politicians is growing in Pittsfield.
Maybe Pittsfield should provide state and local tax credits and other financial incentives to its areas of growth. More people with social problems inhabiting Pittsfield!
Dan, What about GE’s ten million dollars grant to Pittsfield? How many local jobs were created with old Jack Welch’s gift? A couple of million was spent on downtown revitalization, including the historic Colonial Theater. North Street is now a cultural mecca better than what Paris, London, NYC, and L.A. combined has to offer tourists. Millions of people are now flocking to downtown Pittsfield for its culture and arts venues. – Jonathan
One more thing. I would have a better chance winning the lottery jackpot than finding a full time, living wage job in Pittsfield.
If I made a decent living in Pittsfield, I still would not believe that high local taxes with 5 percent yearly tax increases would help me to achieve personal financial security.