This week, in Rockingham Now, Brian Carlton wrote about a new incentive package for two businesses expanding their operations in Reidsville.  Both companies currently have operations there, but the money they’ll get from the city and county is supposed to aid their growth and thereby facilitate job creation.

The incentives total almost $200,000 and are expected to create 55 jobs.

The Reidsville city council members agreed to pay Albaad back for an estimated 80 percent of the taxes paid by the company, not to exceed $22,890.40. That will be paid out over a four year period. For Amcor, the incentive comes out to $171,592.80 from the city, also spread out over four years.

That’s right.  To incentivize economic development, the city is returning taxes paid.  Which is great.  I’m all for returning taxes.  But here’s the thing.  If it’s good for these companies to get their taxes back, then wouldn’t it have been even better if they’d never been collected in the first place?  It reminds me of those deals you get with all the small print.  “This new smartphone is only $39 (after mail-in rebate).”  When I see those, I always kind-of roll my eyes.  I’ll take it, but I wish they’d just not charge me in the first place, rather than sending me a rebate debit card.

And if it’s good for Albaad and Amcor, then surely it’s good for every other business in Reidsville and throughout North Carolina.  That’s why, among other reforms, the John Locke Foundation has advocated the elimination of the corporate income tax.  Such a move would encourage all businesses to invest and bring real, sustainable economic growth, rather than allowing governments to continue to offer special deals to their chosen few.