Brain357
Platinum Member
- Mar 30, 2013
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Ok so these deals really aren't good? You want the state to make bad deals and make other companies pay for them?
Just those with all the lobbying do well?
Wait a minute....... if a city or state offers tax abatements to a certain company to bring business and hundreds or thousands of jobs there, and it doesn't effect the tax rate other businesses are paying, then what's the harm to those other businesses?
If I own Ray's antique shop, and I learn that a major operation is moving in which will bring in more consumers to our area, I think I would benefit from that.
Not only would I benefit from that, but when the city or town needs more tax revenue to keep things going, it's less likely they will be increasing my taxes because of the new revenue from the new business.
This is a business floor plan. Walmart moves into an area. Walmart is what's called an anchor store. Smaller businesses open up near Walmart to take advantage of Walmart's ability to draw in large crowds. I won't be paying anymore in taxes and Walmart will draw new customers that I never had before.
So I guess the question is, who loses when a city gives a business tax breaks?
You just said they can't stay afloat if they offer the deal to everyone. Yet you claim all these great things are coming from this deal. If there are so many great things then they can offer the deal to everyone. Certainly everyone getting this great deal is better than just one great deal.
So you give walmart a great deal and now they have all the advantages of being a huge company as well as the gov has picked them to win. So what happens:
Opinion: Study shows Walmart kills small biz
Or you throw a bunch of money at solyndra and oops, they go under. The government should not be picking winners and losers.
Since you are not a capitalist, what is it you are? What is better than free market capitalism?
Solyndra is an apple and oranges comparison. Solyndra was political and political only. It didn't benefit society or the general public. It only bought votes for the Democrat party.
No, they cannot offer the deal to everybody. It's like anything else, the more you buy, the cheaper it is.
Mom and Pop have their beverage store and pay X amount in taxes. Mom and pop have about four workers. They may not be great paying jobs, but they are jobs.
A company moves in down the street from mom and pop and opens up a northeast warehousing operation. They are going to have 60 docks, they are going to employ about 200 people, they get a tax break from the city to build their warehouse. It doesn't hurt mom and pop one bit.
Okay, so why don't we lower everybody's taxes so that mom and pop pay the same as the new warehouse? Because if they did that, then the new warehouse operation would not be moving there. They would move somewhere that's making a better offer and then you're back to square one. Mom and Pop would still be paying the same taxation, and likely see an increase down the road when the city needs more money.
Solyndra is the government picking winner and losers. You think corporate welfare isn't political? It is lobbyists making deals with politicians for preferential treatment. Yes it is all political. And it is all bad capitalism.
Playing devils advocate; Why shouldn't we financially help business like most other governments?
Well that has already been covered quite a bit on this thread. If the government chooses to subsidize certain businesses they go against the market and leads to things Solyndra. It ended up being a very bad investment. If you let the fair market work we will be in the right business rather than propping up a business that isn't sustainable.