Tax subsidies drain localities

The Atlantic magazine has reported online that Bass Pro Shops and Cabela’s—noted for building their stores with other people’s money—“have received or are promised more than $2.2 billion from American taxpayers over the past 15 years.”

Author Scott Reeder reported, “Cabela’s has received $551 million in local and state assistance during the past 15 years. … The federal government helped ensure liquidity for Cabela’s’ credit card division by providing $400 million in financing for the purchase of the company’s securitized debt.” There was additional detail on other subsidies.

But the Atlantic quotes experts saying that the chains do not produce jobs or economic growth. “Retail is not economic development,” Good Jobs First director Greg Leroy said. “People don’t suddenly have more money to spend on hip waders because a new Bass Pro or Cabela’s comes to town. All that happens is that money spent at local mom and pop retailers shifts to these big box retailers. When government gives these big box stores tax dollars, they are effectively picking who the winners and losers are going to be.” Good Jobs First is a research organization in D.C.

While taking tax subsidies, Cabela’s and Bass also ship capital out of the areas where they operate. Cabela’s is based in Nebraska, Bass in Missouri.