Job creation tax breaks are a costly scam that hinders long-term economic health, a leading national critic of corporate tax incentives said Saturday.

“In most cases, they pay companies to do what they would have done anway,” Greg LeRoy told about 150 people at the annual conference of Nebraskans for Peace.

The cost in lost revenue in Nebraska is likely to approach $200 million a year, LeRoy said.

“When the big boys pay less,” LeRoy said, “everyone else pays more, or the quality of public services goes down, or both occur.”

LeRoy, founder and director of Good Jobs First, is author of a widely discussed book called “The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation.”

The better avenue for cities and states to pursue healthy economic growth would be through development of a skilled workforce and infrastructure improvement, with an emphasis on quality education, LeRoy said.

“Corporate windfalls divert resources from things that could really strengthen the economy,” he said.

Under the current corporate tax break program, education is denied needed resources, LeRoy said.

“If it undermines public education,” he said, “we should get rid of it.”

Donald Mihovk, public affairs vice president of the Nebraska Chamber of Commerce and Industry, rejected criticism of Nebraska’s business incentive package.

“We believe in it, and we think it works,” he said.

Nebraskans for Peace, which marked its 35th anniversary at Saturday’s event, has spearheaded legislative efforts to reform the business incentive and job growth initiative originally enacted as LB775.

A second-generation plan approved by the Legislature earlier this year includes new disclosure provisions that LeRoy hailed as a critical breakthrough.

Although the new plan may turn out to be “LB775 with steroids,” he cautioned, the disclosure requirement over time may allow Nebraskans for Peace and other monitors to “find lots of stinky deals.”

That, in turn, will help critics mount public support to overturn runaway tax breaks, LeRoy said.

While companies take advantage of all the tax breaks — 30 separate subsidies in the average state — that is not the overriding factor in a business decision to build, expand or locate, he said.

“Skilled labor is the key to economic development,” he said.

Too often, LeRoy said, companies fail to keep the promises associated with tax breaks.

Too many of them pay “poverty wages,” he said, when the thrust of the economic incentive program  was to create good jobs. Tax breaks often go to companies that do not provide health care benefits for their employees, he said, shifting increased costs to taxpayers through programs like Medicaid.

“You are the business climate crusaders, the gladiators,” LeRoy told the conference.  “You got disclosure.  That’s huge.”

Peacemaker of the Year awards were presented to the Rev. Carol Windrum of Omaha, and Wes and June Webb of Grand Island.

Mike Shonsey of Cheyenne, Wyo., the first coordinator of Nebraskans for Peace, received the Founders Award.

Nebraskans for Peace claims to be the oldest statewide peace and justice organization in the United States. The conference was co-sponsored by the University of Nebraska at Omaha School of Social Work.

Reach Don Walton at 473-7248 or dwalton@journalstar.com.