Millions of Americans go to shopping malls every day and hand over their hard-earned dollars. But now the Mall of America in Minnesota also wants their tax dollars.
Marketplace radio reports that the 500-store Mall of America, the biggest mall in the country, wants to double in size. And it wants taxpayers to help foot the bill.
According to Marketplace:
- The Mall wants to add more than 5.5 million square feet (almost 100 football fields), at a price tag of $1.8 billion.
- To offset some of the cost, it wants tax breaks from the city of Bloomington, MN, where the Mall is located.
- And it wants the state to kick in $180 million to help build a parking lot.
On the one hand, the Mall’s request is understandable in light of the fact that businesses—very profitable businesses—all over the country are asking for tax breaks for moving to a location, or for remaining there.
The justification is usually that the businesses will hire local people, thereby increasing tax revenue. The Mall is estimating that the number of employees will jump from between the current 11,000 to 13,000 up to 20,000.
The Mall is also claiming that more out-of-state and foreign tourists will make their way to Bloomington for family excursions. And, of course, increased Mall sales will add even more tax revenue.
Ironically, in most of the other scenarios, the businesses asking for the breaks are bearing the costs of the new employees. But the Mall of America will be leasing out much of the new space to other for-profit companies that will be doing the hiring.
Will those tax breaks lead to lower lease prices for the vendors and, ultimately, lower prices on the products? Or does this corporate welfare go to line the pockets of the very successful owners of the Mall?
Yea, we know. We just thought we’d ask?
Minnesota legislators are considering the requests.
May we suggest a better solution than this never-ending plea for special tax breaks?
We think cities and states should simply lower their tax burdens on their residents—people and businesses. Let the city or state boast that it has nearly the lowest tax burden in the country.
That action WILL draw more business and more revenue—and, not coincidentally for the politicians, more votes.