Going Broke for Economic Development
In the 2009 session of the North Carolina General Assembly, lawmakers voted to give huge tax incentives in order to lure Apple Computers to the western part of the state. This tax package is just one of many gifts given to corporations by the North Carolina General Assembly in the past ten years in the name of economic growth.
The issue in this corporate give away atmosphere is that business pits state against state and regions against regions. Some areas of North Carolina are unable to compete for business relocation because corporations do not receive the assurance that they will be welcomed with open arms, free of tax responsibility.
As we learned earlier this year, these tax incentives and promises of job creation are not recession proof. The large incentive package given to Dell Computers to build a manufactruing plan in Winston-Salem was a blessing to the region until the economy went south. At that point, Dell cut costs and jobs leaving the taxpayer with the cost of the corporate incentive and the responsibility to the laid-off workers.
Our state's lawmakers has adopted the policy of going broke for economic development and has foregotten about working North Carolinians in the process. We understand that each state must compete in the global marketplace to attract new business within its borders. However, it is unfair to taxpayers and small businesses within North Carolina to be saddled with the burden of paying for corporate welfare so that big business will come to our state. This money from the tax packages would be more beneficial in providing tax relief and business development and sustainability programs for home grown industries.
Tar Heel residents and home grown industries have pride in the Old North State and share a responsibility of leaving North Carolina in better shape for future generations. Corporations do not always share this mission and often look elsewhere once the tax incentive pakcage expires.
North Carolina can do better than this! Read the following article found in a past publication of the Institute for Southern Studies by clicking on the link provided below. This article gives valuable insight on the relationship between tax incentives for corporations by local municipalities.
Corprate Welfare and North Carolina
The issue in this corporate give away atmosphere is that business pits state against state and regions against regions. Some areas of North Carolina are unable to compete for business relocation because corporations do not receive the assurance that they will be welcomed with open arms, free of tax responsibility.
As we learned earlier this year, these tax incentives and promises of job creation are not recession proof. The large incentive package given to Dell Computers to build a manufactruing plan in Winston-Salem was a blessing to the region until the economy went south. At that point, Dell cut costs and jobs leaving the taxpayer with the cost of the corporate incentive and the responsibility to the laid-off workers.
Our state's lawmakers has adopted the policy of going broke for economic development and has foregotten about working North Carolinians in the process. We understand that each state must compete in the global marketplace to attract new business within its borders. However, it is unfair to taxpayers and small businesses within North Carolina to be saddled with the burden of paying for corporate welfare so that big business will come to our state. This money from the tax packages would be more beneficial in providing tax relief and business development and sustainability programs for home grown industries.
Tar Heel residents and home grown industries have pride in the Old North State and share a responsibility of leaving North Carolina in better shape for future generations. Corporations do not always share this mission and often look elsewhere once the tax incentive pakcage expires.
North Carolina can do better than this! Read the following article found in a past publication of the Institute for Southern Studies by clicking on the link provided below. This article gives valuable insight on the relationship between tax incentives for corporations by local municipalities.
Corprate Welfare and North Carolina
Posted by CarolinaCentrist at 8/14/2009 8:44 AM 
Categories: NC General Assembly
Tags: Corporate Welfare
Categories: NC General Assembly
Tags: Corporate Welfare
Your article does a good job pointing out the dangers of state, regional or local government offering funding or tax avoidance incentives to bring companies into the area in order to create jobs or build up the economy. At worse, it is unfair to other businesses that stay without government help, and at best it should be a practice carefully written to ensure good results. In short, we ought to say no sometimes to the commercial dangling carrot.
Charles Malone,
Raleigh
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