@Grashopa, I am speaking from my own experiences in city government. I'll give you one example. A developer wanted the city where I worked to put a Tax Increment Finance District into a corn field, so that he could get a subsidy for a subdivision of high end houses. This was in a declining town of about 12,000 souls. He wanted an agreement also where his firm could put in streets that did not meet code, specifically too narrow to get emergency vehicles through, and then have the city take possession, and also put in the needed trees and landscaping work throughout the subdivision. After looking at his project plans, the city turned it down. The developer was irate and called up the local talk show when my boss, the city manager was on it. When the developer said that the city needed more high end housing, the city manager said that if that were the case, there would be a market for it, and that market would provide it. He also asked the developer how his corn field happened to be blighted and dilapidated enough so that it would conform to the Illinois TIF laws. Did it have corn borers? Things got heated, and the city manager finally told the developer that he was "nothing more than a damned socialist". I guess the truth hurt. There are some libertarians and conservatives in my old profession. There may be a need to give some assistance to bring in new businesses and provide more jobs. I know of one instance where we sold a firm a lot in our business park for a dollar, and provided gravel and paving for their shipping dock. We threw in about $12,000 for putting in their electrical service, which for a specialty foundry is a big deal. In doing so, we put that land back on the tax rolls, and brought about 15 decent paying jobs into our small town. And, it did not damage any existing businesses, and increased the cash flow in the local business district. That worked well.

Sure, the county should grant the pharmaceutical company a tax break... equal to one half the cost break the company would offer to each and every county resident. In that way, government could subsidize drug use, er, I mean health. Yeah, that's the ticket - health. You're not against health are ya?

The city manager nailed it, Doc.

Only difference between the "bidness-men" today and the Bolsheviks a century ago is that the Bolsheviks freely owned up to what they intended.

Interesting, I never really thought of it that way.

Amen Karl. They keep talking about capitalism failing, but it is not capitalism that is failing. It is the government dole.

I heard all the time I was growing up and later that you needed industry and business to provide a tax base. But, every time I hear of something of significance coming in, the taxes are waived.

There is your tax revenue. The Feds should levy a 100% tax on every move here tax break given business. This crap would stop. I recall a guy I met who lived in a small town in Arkansas. He said the local high rollers owned the business park and the town would issue bonds and tax breaks to get business in. This would inflate the housing prices. People would buy houses, then the tax beenfits would expire. The high rollers would buy the houses back when they defaulted at lower prices, get more tax breaks and repeat the process.

Where I live, I feel development is done on a crony business. Rather than upgrade the zoning, they have left some of the best property in this county in substandard housing and there are Habitat for Humanity homes being built where there should naturally be high density housing and commercial development. It is a unique location and the only reasoning I can come to is the cronies don't own the property. The whole area could burn and the land would be worth twice what is on it right now. The entire area will never develop to the location as long as this stuff is maintained. Light rail doesn't go everywhere.

Quote:

The Feds should levy a 100% tax on every move here tax break given business.

So your against state rights? I don't think we should pick and choose when the Feds get to walk on states.

American Airlines, who has a huge maintenance facility here, has been given various tax incentives through the years. Every time rumors start about them moving their facilities or decreasing their workforce, it seems they get some kind of break. They are the largest employer here, so everyone freaks out if they start to make rumblings about any changes. It will be really interesting to see what the recent developments will bring.

Other businesses that have moved into the area have also received preferential treatment, if they thought it would brings jobs to the city, or maybe line the pockets of city/county leaders, or perhaps the good folks in the local C of C.

Definitely cronyism going on here.

Nick - Tulsa?

Clintb350,
Yes, but not affiliated with AA.

Taxes on businesses should be abolished (except property, I suppose). That therein is the root of the entire problem. There's no issue of repatriating profits, no issue of clawbacks and tax incentives to stay or move (which is in itself expensive).

Taxes on businesses are a tax on the consumer. They need to go away.