thereisnospoon
Gold Member
In a perfect world you'd be spot on. However, the USA is made up of 50 states each with different tax laws, tax structures and various other regulations. That means states must compete for businesses. It's sort of like the free agent market in Major League Baseball. The owners( States) know darn well they should not extend big money( tax breaks) to quality players ( businesses) but they do not want the other team owners( states) to get a crack at the star player( business). SO they off the best deal ( tax break) for the player( business) andif that means spending high dollars (loss of some tax revenue), so be itLike when BMW gets a tax break from Greenville and Spartanburg Counties to build not only a large automotive plant there,but also agrees to pay for an expansion of the airport in return for bringing in 10,000 new and very well paying jobs?
Like when Dell gets tax breaks to build a new assembly plant in Greensboro, NC in return for creating 1,500 news jobs?
These deals are made all the time. It's business. In business parties make trades. Everybody wins.
I couldn't disagree more. The government leaders and the businesses involved might 'win'. The rest of us get screwed. In particular, the businesses trying to compete with the companies getting in bed with government get screwed. The corporate state is not something I want to see in my lifetime, and people lauding the view you represent here are inviting just that. We should keep business out of government and government out of business.
Plus. Big plus. With the promise and delivery of hundreds or even thousands of new and well paying jobs, states are welcoming the new companies because the additional payroll taxes, sales taxes from equipment purchases by the firm, new spending power of the workers, etc will make up for the loss in property tax revenue. Plus it's just plain old good PR for local and state politicians to be "pro business and pro new jobs"..
At this point in this shitty economy, job creation is crucial.
I don't see how anyone gets "screwed"....