TastyKake: Continued Failure of Corporate Welfare
PA Independent reports that TastyKake, a corporation with operations in Philadelphia and Chester County, may have to liquidate. This despite a $32 million low-interest state loan (which is looking increasingly unlikely to be paid back) and a $1 million grant.
In addition, TastyKake received a tax abatement from the city of Philadelphia.
Once again, this demonstrates the failure of Pennsylvania’s economic development strategy. While being the 2nd highest spending state on “corporate welfare”, the commonwealth lags the nation in job and income growth.
By now, this fact should be obvious—offering subsidies and tax credits to politically selected businesses, while keeping taxes high on all businesses is a prescription for economic stagnation.