A Clarification on Living Social

Moneybox
A blog about business and economics.
Nov. 28 2012 5:34 PM

A Clarification on Living Social

After speaking to a DC official about the Living Social situation, I wanted to clarify something about the subsidiy scheme namely that no money has actually gone out the door. The way it was set up is that Living Social would be eligible in the future for some substantial tax breaks if they maintain at least 1,000 employees in the District, build out a certain square footage of office space, and meet other conditions.

Given the current situation, Living Social not only hasn't gotten any money but isn't currently on track to meet the conditions. This is a break they might get in the future if they expand and stick around not something they've already pocketed.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

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