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(The New York Times)   Because it's not socialism when corporations benefit   ( nytimes.com) divider line
    More: Obvious, Tax, Amazon HQ2, economic development, incentives, Amazon incentives, economic development incentives, Amazon HQ2 competition, Amazon offer  
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2015 clicks; posted to Business » on 06 Mar 2018 at 10:10 PM (27 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



19 Comments     (+0 »)
 
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2018-03-06 04:05:53 PM  
A single bankruptcy is a tragedy. A million is a statistic.
 
2018-03-06 06:07:06 PM  
As always, socialize the risk, privatize the profits.
 
2018-03-06 10:16:38 PM  
It's not political theater when laws are passed and millions of dollars are affected. It's just plain old politics.
 
2018-03-06 11:01:26 PM  
This is why thy spend all that money to buy politicians.
 
2018-03-06 11:14:21 PM  
 Corporations run by white people, right?
 
2018-03-06 11:25:32 PM  
The tax revenue benefits of having Amazon setting up shop in your state far outweighs the temporary incentives you set up for them.

You can say "the company will owe no taxes" but the citizens will need to still pay their income taxes, and they will be able to buy more from local businesses.

Unless they buy from Amazon, I guess, but that's not really what we're talking about.
 
2018-03-06 11:41:00 PM  
Because the states are the meth labs of democracy.
 
2018-03-06 11:47:23 PM  
Once you understand that half of America lives in a virtue based society, it all makes sense.
 
2018-03-07 12:02:03 AM  

AverageAmericanGuy: The tax revenue benefits of having Amazon setting up shop in your state far outweighs the temporary incentives you set up for them.

You can say "the company will owe no taxes" but the citizens will need to still pay their income taxes, and they will be able to buy more from local businesses.

Unless they buy from Amazon, I guess, but that's not really what we're talking about.


That is the line that is fed to people. And there can be a kernel of truth to it. But quite often it is BS. Just like how every city and team owner talks about how much revenue their new stadium will bring the city.

For example, the one cited in the article where they gave millions of dollars in tax breaks for the company to cut the jobs a few months later anyway.

The classic example, though, is Kansas City. Where millions of dollars in tax breaks were provided to get companies to move between Kansas City, Kansas and Kansas City, Missouri. Nobody moved.

Nobody is changing significant buying patterns over that. Sure there is a bit of income tax, but nothing compared to the corporate tax breaks.

And even if you have a good deal there are huge risks. You just showed how far you are willing to go and every major local company will demand at least that deal now.

Plus on a non-local scale these things are absolutely net negatives.
 
2018-03-07 12:07:06 AM  
Oddly enough, we've seen this sort of marrying of corporate and state interests before.

It didn't end well. Not when the Germans tried it. Not when the Italians tried it. Because ultimately, you HAVE to marry nationalism with this sort of looting of the public, to ease over any hurt feelings. And you sort of need some scapegoats for people to blame on why THEY aren't profiting anywhere near so well, while those closest to those in power seem to be getting all the breaks. Competition becomes not a matter of building a better mousetrap, but either sucking up, or outright bribing your way into the winner's circle. All glory to the state turns into a competition to outdo one another on the field, and if you're limited to what you can accomplish in business, then service is pretty much your only option, which means you HAVE to give folks some opportunities to shine, and oddly enough, turning out for the military or security services means some hope of advancement. But it leads to some ugly ass places. Especially when the state is ALL.

The marriage of corporate interest and state interest HAS been tried. A couple of times. And it generally has flaws, because while you can get some great service out of folks, there is such a gap that even those who "make it" in those circles, have to shave off so much soul...that it gets into some real dicey ground, fast. And that's when otherwise decent folks are trying to serve their country, and doesn't even touch what happens to those who are closest to the center of the power structure, and given all that money and power for those who want to set up this sort of fascist state...and that IS really what we're talking about. It's a recipe for disaster that we've seen play out before.
 
2018-03-07 12:33:45 AM  
"The incentives that governments offer corporations to do business in their state are mostly political pandering. "
 
2018-03-07 12:36:47 AM  

Bluemoons: "The incentives that governments offer corporations to do business in their state are mostly political pandering. "


Goddammit. I was trying to italicize and make a follow up comment. Stupid whiskey fingers.  😐🔫
 
2018-03-07 05:30:33 AM  
Sure and those businesses never create anything......


Oh wait, subsidies turned Georgia into the go to spot for film making and have put out most of the largest box office films the past few years and generated millions for local and state taxes while creating a ton of new jobs.
 
2018-03-07 07:09:06 AM  

steamingpile: Oh wait, subsidies turned Georgia into the go to spot for film making and have put out most of the largest box office films the past few years and generated millions for local and state taxes while creating a ton of new jobs.


...but when you look at the balance sheet, film subsidies almost always end up being a net loss for the state, since the actual income ends up outside of the state. You think the state of Georgia gets a percentage of Black Panther's receipts, for example? Dream on.

It's a nice bit of prestige, but it's almost never worth the money. Just like funding sports arenas. One of the biggest excuses for state and local funding of NBA and NFL structures is that it "brings in business and taxes" - that large corporations will move to a city because it has a major sports team. When they survey companies, though, "a good NFL/NBA/MLB team" is somewhere near 20th on the list.
 
2018-03-07 07:35:34 AM  
FTA: "Why Are Your State Tax Dollars Subsidizing Corporations?"

Because the 1% said so, and Republicans abide.

Is that really a mystery?
 
2018-03-07 09:00:44 AM  

AverageAmericanGuy: The tax revenue benefits of having Amazon setting up shop in your state far outweighs the temporary incentives you set up for them.

You can say "the company will owe no taxes" but the citizens will need to still pay their income taxes, and they will be able to buy more from local businesses.

Unless they buy from Amazon, I guess, but that's not really what we're talking about.


'Course if States didn't race each other to the bottom of the barrel over this the companies would still set up shop and the states and municipalities would get tax revenue as well as jobs.

Instead everyone lets themselves get played against each other.
 
2018-03-07 10:41:24 AM  
img.fark.netView Full Size


I don't know, New York Times.
 
2018-03-07 01:16:34 PM  
Once again, farkers prove they don't actually know what socialism is.
 
2018-03-07 03:16:09 PM  
Corporate welfare is best welfare.

/ and remember: corporations are people too
// in fact, they're way better people than you
 
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