by Anna Manning
John Locke Foundation’s Jon Sanders weighs in on corporate welfare for Apple Inc –
As I read the details of the proposal and hear what state and local policymakers are prepared to do to bring in Apple or the next large employer, I am staggered. They would:
- Dramatically lower the threshold to qualify for a “transformative” project award — from at least $4 billion in new investment to $1 billion
- Refund up to 90 percent of the “transformative” business’ withholdings associated with the new, eligible job positions
- Remove the cap on the per-position refund amount (which is currently $6,500)
- Extend the time a “transformative” business is eligible for these incentives from an already unthinkable 25 years up to 40 years
- Grant local property tax abatements for up to 30 years
- Pay their infrastructure (water, sewer, and rail access) and raid other state incentives funds (One North Carolina, Golden LEAF, etc.) for extra millions
Jon questions why Republicans would want to change after North Carolina has become the model state for sound economic policies yielding strong economic growth under their leadership for the last few years.
Republican majorities have cut personal and corporate income taxes, simplified tax rates to single flat rates for everyone, removed a lot of government red tape, while still letting state budget continue to grow, just within its means. They’ve been doing the right things the right way and getting results.
Corporate welfare offers employers like Apple an unequal advantage from other employers in the state. North Carolina already has the kind of economy that a state would want to have and employers would want to come to, open to all small and large industry. We shouldn’t chase after corporations like Apple, offering them incentives that taxpayers have to pay for and other employers do not receive.
Read the rest of Jon’s piece here.