Memo to Establishment: Sometimes, taxes mean more than freebies
House speaker Thom Tillis and his team, Gov. Pat McCrory, and scores of big names in the state’s business establishment have been harping on the alleged importance of customized, special incentives to lure new business — from TV and movie productions to industry — to North Carolina.
Now, the McCrory administration is trying to raise from the dead a $20 million incentive fund whose purpose would be helping to close the deal on economic development projects. We also got details about $107 million in goodies the McCrory administration was dangling in front of Toyota to move its US headquarters to Charlotte.
Then, we get word that Texas wins Toyota’s heart with only $40 million in incentives. Wait. I thought companies sat around waiting to see who could give them the biggest bag of free stuff. How did Texas win out by offering roughly a third of what North Carolina did? Let’s find out:
Charlotte has had its share of corporate relocation victories lately — MetLife and Sealed Air Corp. to name a few.
But when it came to landing Toyota’s North American headquarters earlier this year, the Queen City found Texas had a king-sized advantage, economist John Connaughton said.
“There’s a lesson for every state in this,” Connaughton said. “Taxes matter.”
While North Carolina was putting together an incentive package worth a reported $107 million, Toyota chose Texas’ offer of $40 million in part because it has virtually no corporate or personal income taxes. […]
SO. Improving the overall economic climate for EVERYONE can result in good things that benefit everyone. Not everyone is trying to sniff out the biggest bag of freebies.
Granted, Texas did play the corporate welfare game too. But their overall business climate was the deciding factor. The Tax Foundation published an analysis in late 2013 showing North Carolina with one of the worst business tax climates, while Texas had one of the best.
Republicans on Jones Street blessed us with some tax reform in this past session, but it’s clear that we still have a lot of work to do on that front.
6 thoughts on “Memo to Establishment: Sometimes, taxes mean more than freebies”
I would like to see Congress shut down the corrupt corporate welfare mess by instituting a 99.9% tax on corporations for all corporate welfare received. That should kill that disgusting practice graveyard dead.
And as for the Governor, I’m honestly surprised he didn’t wait until he had a second term safely secured before revealing so openly that he’s no conservative, the way that George W. Bush and Richard Burr did. Guess his friend’s priorities couldn’t wait two years.
Starting some time next year, Rich Burr will pretend to be a conservative. He is up for re-election in 2016. Hell, his staff will even call if you contact his office by email. Getting re-elected is the main objective for these politicians. They should all be part time with NO benefits.
I think Burr’s goal in 2016 is a term as a well paid lobbyist on K Street, not another term in the US Senate, and I think that explains most of his actions.
When Tricky Dick Burr helped fund the Watergate style dirty tricks against Chris McDaniel in Mississippi, he assured that many conservatives would not support him again.
Does repeal of the 16th amendmendment and abolishing the internal revenue service come to mind? Then and only then can there ever be a true free market economy again. One driven by supply and demand. Power returned to ” we the people”. N C needs to engage an effort toward this end.
I believe Thom Tillis loves crony capitalism, just like Kay Hagan. These tax incentives are discriminatory. Lower taxes for everyone!
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