idgi a lot of tax incentives are taxable. example "If you deducted your state and local income taxes last year and received a state tax refund last year then your total state tax refund that you received from the previous year may be taxable."https://blog.turbotax.intuit.com/tax-tips/is-my-state-tax-refund-taxable-and-why-90/ …
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more broadly, it's a proposal to discourage some of the more egregious forms of corporate welfare that municipalities seem to be bending over for
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