Dear Editor:
New York City and Jersey City sacrifice billions in tax revenue to compete with each other for jobs. The sacrifice does not create jobs, instead, it burdens the average wage earner.
Jersey City grants real estate tax abatements to attract firms from New York, which pays firms to stay. Both cities grant incentive packages mostly to financial firms that would stay in the metropolitan area, even without incentives. These firms occupy prime real estate that should be paying the highest taxes.
Financial firms often relocate employees near their old location, then, politicians at the new location announce "new jobs." Hotel and luxury apartment owners also receive abatements for occupying prime real estate.
Jobs are not created through sacrificing tax revenue needed for public services, education and debt reduction. The economy creates jobs.
Abatements reward speculators for keeping property vacant until the market is ripe. Speculators keep their taxes low and your rents high by warehousing space. The price of property increases when abatements are assured. Other taxpayers must make up the loss.
Since the World Trade Center attack, New Jersey has no excuse to sacrifice public funds to attract firms from New York City.
New Yorkers should not payoff firms that threaten to leave. The average taxpayer is not obliged to keep the vacancy rate low. Those who profited from jacked-up rents can offer lower rent as an incentive. Let the free market work.
Citizens of Jersey City and New York City should unite in demanding a regional moratorium on incentives.
Gary S. Canns