Daley defends TIF empire

Understandably, peturbed public employees prefer to have tax dollars given directly to governmental agencies and, in turn, channeled as their compensation.

Those who chose to ignore the "dismal science" of economics or the fundamentals of financial management, may be frustrated by this temporary diversion of tax revenues from public to private entities.

One of objectives of such TIF Districts is to invest in private sector construction. For example, both building trades contractors & their construction material vendors both pay taxes outside of the TIF District. In turn, such projects create new employment & increase payroll taxes paid outside of the TIF District. Many economists recognize that this tax diversion to private development, if spent wisely, has a broad beneficial affect both inside & outside of the TIF district. Depending on how private sector employees spend their paychecks, this diversion may produce an economic multiplier which greatly exceeds the intial TIF District tax diversion.