In late 2004, after some ten years of taking tax breaks and union concessions, Maytag closed its refrigerator manufacturing plant in Galesburg, Illinois (population 33,000) and relocated it to Mexico. The company had received more than $10 million from the town and the state. Galesburg District Attorney Paul Mangieri wanted to sue the firm to reclaim tax money that the town would have spent on its schools: “We gave Maytag these incentives and they accepted them. We did it on faith and trust.” Yet other locals believed such a strategy would backfire, driving away other potential business interests. “Maytag’s leaving town has devastated our community,” car dealer Jeff Klinck pointed out, “But I don’t think any good comes from revenge. We want to move forward, not back.”

Internet Assignment: A final decision as to whether to sue Maytag was made in November 2004. What happened? Find out if any other communities in the United States went to court to catch up with corporations which had benefited from tax abatements but ended up closing down operations for more cost-efficient locations. See: Township of Ypsilanti v.

General Motors, 1993 Wl 132385 (Michigan Cir. Ct.) and Ypsilanti v. GM, 506 N.W.2d 556 (Michigan Court of Appeals, 1993).