Government
What would you ask LivingSocial or DC officials?
Next week, Ken Archer will discuss the LivingSocial tax deal and ways DC can foster more of an innovative technology sector as part of a panel July 11 with LivingSocial's CFO, Lisa Mayr, and David Zipper, the DC official who spearheaded the tax break.
Photo by asmythie on Flickr.
What questions would you like to ask? Moderator Peter Corbett has agreed to ask at least one of the best questions our readers suggest.
The panel is part of the monthly DC Tech Meetup. This month's it's at Sixth and I Historic Synagogue, unsurprisingly located at 6th and I, NW. The panel will start around 8:10 on Wednesday, July 11; the meetup begins at 7 with demos by 10 area startups.
Ken has argued that DC should take action to encourage a hub of technology companies in DC, but the deal DC worked out with LivingSocial doesn't ensure that the money pays for what DC needs. DC would benefit from attracting more highly skilled software engineering workers, who might work for LivingSocial now, and could then start their own companies in the future or staff ones that others start.
The tax break pays LivingSocial for hiring employees who live in DC, but doesn't distinguish between actual jobs creating technology, which help DC in the long run, and jobs answering phones for customer service, which don't. It also still gets credit if it hires people only to replace others who leave, generating no net growth in jobs.
DCFPI has pointed out that LivingSocial could move its product development operation out of DC and not have to pay back its subsidy. It could sell to another company outside DC and move, and not repay the benefits it's gotten. Or it could earn the benefits in a few years, then stop following through on its promises, and pay nothing back.
More jobs outside of government are absolutely in DC's best interest, especially in the long run. The panelists will discuss the LivingSocial deal, and what the District can and should do in the future to build up a tech community
David Alpert is the Founder and Editor-in-Chief of Greater Greater Washington and Greater Greater Education. He worked as a Product Manager for Google for six years and has lived in the Boston, San Francisco, and New York metro areas in addition to Washington, DC. He loves the area which is, in many ways, greater than those others, and wants to see it become even greater. 
Comments
- Bikeshare is a gateway to private biking, not competition
- Judge denies injunction against closing schools
- Short-term Washingtonians deserve a voice, too
- Long-term closures: A solution to single-tracking?
- Public land deals have both benefits and pitfalls
- PG planners propose bold new smart growth future
- Metro policy for refunds after delays falls short, riders say
by varun on Jul 5, 2012 2:59 pm • link • report
by Tom Veil on Jul 5, 2012 3:18 pm • link • report
Often, the deals seem like a race to the bottom, in which cities and suburbs battle each other for a company to move from elsewhere in the metro area. Ultimately, there's no net-increase in jobs, just a shift from one office building to another at a cost to both jurisdictions (the one that just lost that company and its tax revenue, and the one that just got the company but paid for it via tax abatements).
What effort is being made by DC to work cooperatively with jurisdictions in Maryland and Virginia? Is there any chance we could get some sort of anti-poaching agreement so that companies can't use the threat of moving to some other place to extract money from local governments?
by Rob P on Jul 5, 2012 4:04 pm • link • report
If we want to encourge the next google / facebook then we should be funding basic research or funding incubators. Excusing Living Social's taxes seems a convoluted way to encourage other companies.
by MW on Jul 5, 2012 4:43 pm • link • report
by MW on Jul 5, 2012 4:48 pm • link • report
There's nothing wrong with recent college grads getting jobs, but they can compete for lots of jobs including in the federal government and this isn't something DC will get long-term benefits from paying for.
by David Alpert on Jul 5, 2012 5:40 pm • link • report
How much longer do you plan to stay in business? Something tells me the "lose a half billion a year with an admittedly toxic and replicable model" won't cut it for more than a few more quarters of massive hemorrhaging of investor cash.
And yes, as other posters have pointed out, those new "jobs" are going to 20-something hipsters fresh out of college who probably won't make DC their long-term home anyway.
On the plus side, they won't be around by the time the abatement goes into effect...so perhaps the DC Council is wiser than we think...
by swested on Jul 5, 2012 6:48 pm • link • report
by CouponBooks on Jul 5, 2012 7:32 pm • link • report
by FYI on Jul 6, 2012 9:26 am • link • report
by Jasper on Jul 6, 2012 10:44 am • link • report
Add a Comment