If anyone still doesn’t believe that the whole idea of tax-increment financing, or TIF, is morally bankrupt, they only have to look at the latest shenanigans in Portland. The city took TIF money from the downtown Pearl District and used it to build a school at the opposite end of town.
What’s wrong with this? TIF is a California invention designed to kick-start development in blighted areas that otherwise might not attract private investors. Planners like to claim that TIF pays for itself, but in fact, new developments impose costs on fire, police, schools, and other public services, yet the taxes that would cover those costs are used to subsidize the development instead. This means everyone else in the city either has to pay higher taxes or accept lower services.
