Economic Incentives

[GRDadof3]

A very eye opening article in the GRBJ regarding the economic incentives that States and municipalities dole out (called corporate welfare by some). The US Supreme Court has agreed to hear a case involving Daimler Chrysler and about a dozen Michigan taxpayers and was pushed by Ralph Nader. Another group in NC is filing suit against the State for doling out $280 Million to Dell to build a plant outside of Greensboro.

Plaintiffs claim it violates free trade between states. If the lawsuit is won, it may mean the end to ALL economic incentives (tax free condo status, Brownfield Redevelopment, the Tool & Die Recovery Zones, Alticor's Hotel tax break, etc..). Many people feel these incentives are out of contol.

http://www.grbj.com/GRBJ/ArticleArchive/20...ves+At+Risk.htm

If you don't subscribe, here is another article:

http://www.fdimagazine.com/news/fullstory....d_signals_.html

[terra firma]

A very eye opening article in the GRBJ regarding the economic incentives that States and municipalities dole out (called corporate welfare by some). The US Supreme Court has agreed to hear a case involving Daimler Chrysler and about a dozen Michigan taxpayers and was pushed by Ralph Nader. Another group in NC is filing suit against the State for doling out $280 Million to Dell to build a plant outside of Greensboro.

Plaintiffs claim it violates free trade between states. If the lawsuit is won, it may mean the end to ALL economic incentives (tax free condo status, Brownfield Redevelopment, the Tool & Die Recovery Zones, Alticor's Hotel tax break, etc..). Many people feel these incentives are out of contol.

http://www.grbj.com/GRBJ/ArticleArchive/20...ves+At+Risk.htm

If you don't subscribe, here is another article:

http://www.fdimagazine.com/news/fullstory....d_signals_.html

Depends on what the purpose is and whether the need is there or not. Incentivizing corporations if they would have already done what is contemplated w/o the incentives anyhow is wasteful but tax incentives can also spur economic growth.

Look what the ren zone did to North Monroe. You think the Brass WOrks bldg would have happened w/o the ren zone status, brownfield SBT credits, 10% historic rehab credits etc ? No way-- those things were the reason that project occurred and look at the end result-- a thriving neighborhood full of tons of new tax base for the City. The ren zone benefits will go away in a couple years; the people who live, work, and earn money there will not.

Ditto the Grandville projects we talked about yesterday. We would not be doing those without the NMTC's, DDA grants and so on. Projects would not be financially viable without those incentives. The result at the end of the day is more jobs, more opportunities, and more tax base for the municipality.

[torgo]

After reading news reports after Kelo v. New London , I have decided to not believe anything I read in any kind of newspapers or magazines about the laws and court decisions regarding this kind of stuff. The coverage of that decision was so blatantly absurd I couldn't stand it.

I think Eric has it right though, and it seems like he should know!

[GRDadof3]

I'm not necessarily saying they are bad. In fact, they should just cut business taxes in Michigan across the board. It will be interesting to see how the Supreme Court rules and how it might affect business expansion. I think some companies abuse it though, just like anything, and will bully city officials into getting a tax break when they really don't need one (and who is to determine "need").

Let me guess, the Supreme Court ruling will be so vague and abritrary that no one will understand what they can and cannot do

[torgo]

I'm not necessarily saying they are bad. In fact, they should just cut business taxes in Michigan across the board. It will be interesting to see how the Supreme Court rules and how it might affect business expansion. I think some companies abuse it though, just like anything, and will bully city officials into getting a tax break when they really don't need one (and who is to determine "need").

Let me guess, the Supreme Court ruling will be so vague and abritrary that no one will understand what they can and cannot do

And then the media will chime in and blow everything waaay out of proportion, like when they said "cities can now sieze your property to build a mall."