Following the state and local government’s massive handout to Dell, it is clear that our state has become a prime target for business. Unfortunately, the reason businesses are looking here is not because of our infrastructure, our community colleges, or our workers. What’s attracting business is our lucrative tax-based incentives. In fact, we’re so business-friendly, that we’re giving away money with no real stipulations. When Google came to the state with its hand out, we promised much more than we’ll get; try waiving almost $165 million in taxes in exchange for virtually no commitments on the other end. John Hood frowned on the lack of benchmarks. Follow this up with news that Honda Aircraft, a company that needs no tax-based incentives in order to thrive, seems to have landed a tax break for no other reason than that incentives are now part-and-parcel of any North Carolina economic development deal. It’s a shame that this policy is costing the taxpayers, said Joe Coletti in the Raleigh News & Observer. The growth in incentive handouts at the state level may be the result of continued business influence at the federal level. George Leef has the inside, in his book review for the Future of Freedom Foundation.
