Subsidies

Marc Oestreich | 5.6.2025 11:45 AM

La Porte, Indiana, is a small city between South Bend, Indiana, and Chicago, Illinois. The recent announcement that Microsoft is investing over a billion dollars into a vast new data center campus in La Porte is expected to be transformational for the town of 22,000 people.

Microsoft was given a 40-year tax abatement on equipment, a renewable state sales tax exemption through 2068, and just $2.5 million of payments in lieu of taxes (PILOT) over four years—roughly 30 percent of what it would normally owe. After that? Nothing. Local utilities would cover the infrastructure.

Indiana's levy system is designed to reward growth with lower taxes. But when the biggest newcomer isn't taxed, the reward goes with them, the burden stays with the taxpayers, and the scales get tilted by bureaucrats.

Just 60 miles up the toll road sits Soldier Field, home of the Chicago Bears. The stadium's 2002 post-modern renovation cost $587 million, $387 million of which was shouldered by taxpayers. Two decades and two dozen quarterbacks later, Chicago only has $640........

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