Why did Taxpayers Give $30 Million to Starbucks? | The States

Credit card fee regulations, California looking at special tax districts to draw in business, Tennessee giving Starbucks $30 million, and Michigan looking to bolster transportation taxes. Illinois is taking a first-in-the-nation approach to credit card fees that could have consequences well beyond state lines. A new law set to take effect July 1, 2027 bans interchange fees on the tax and tip portions of transactions — but critics warn it could cost consumers more than it saves. Steve Swedberg, policy analyst with the Competitive Enterprise Institute, breaks down the ripple effects for consumers, small businesses, and the national payment system. Also in this episode: - States and cities are increasingly using tax increment financing districts and direct subsidies to attract corporations, raising questions about transparency and taxpayer risk. - Illinois and California are both pursuing high-profile public subsidy deals for the Chicago Bears and a new MLB franchise respectively. - Tennessee handed Starbucks $30 million in taxpayer grants to open corporate offices in Nashville despite the city already being a highly desirable relocation destination. - The state's Fast Track program has distributed $758 million to 570 companies over eight years, with at least 70 failing to meet job creation targets. - A bipartisan Michigan bill would redirect sales taxes on auto parts from the general fund to the state's transportation fund, adding $225 million for roads and transit without raising taxes. - The shift comes as more Michiganders buy auto parts at big box stores like Costco and Meijer rather than traditional auto parts retailers. Plus, America's Talking: New York - https://www.thecentersquare.com/new_york/article_df472f55-78df-481b-a5c4-866d6d546e6a.html South Carolina - https://www.thecentersquare.com/south_carolina/article_92c4e9d5-6294-4606-87f9-54a65f6a310a.html Colorado - https://www.thecentersquare.com/colorado/article_9942270d-8cbc-423f-96f0-aff9c126bfdb.html Texas - https://www.thecentersquare.com/national/article_f4057aba-66d1-44b2-8ebe-d0e5bce6cba4.html The States delivers taxpayer-focused reporting from around America, powered by The Center Square. ____________ 👉 Read more: https://www.thecentersquare.com 📩 Sign up for the newsletter for daily updates 00:00 Intro 00:36 Credit card fees 10:55 Break 11:35 Coffee subsidies 19:40 Break 20:26 Infrastructure funding 30:09 Break 30:50 Transportation taxes 38:49 Break 39:28 Election results