The Incentives Game: is it really worth it?

[Captain Worley]

Maybe this is true in SC, but here in GA corporate taxes are less than 10% of the total tax revenues.

[scoop]

So why did you say they didn't pay taxes? Less than 10% of tax revenues does not mean they don't pay taxes.

Not by a long shot.

[Captain Worley]

That's not unusual. Most small businesses are S-corps and generally the profits go to the owners as salaries, so actual profit is small. And the owners also have to pay all (not just half) of their social security.

Believe me, corporations, at least most of them, pay more than their fair share of taxes.

[GMoxley]

scoop: corporations DO pay taxes.

IRC section 11 (b) Amount of tax

(1) In general

The amount of the tax imposed by subsection (a) shall be the sum of

[GvilleSC]

It looks like Lockheed Martin MIGHT have reason to stay at the Donaldson Center in Greenville. Law makers are looking to pass $3 million to upgrade the facilities at the site. The money will come from the surplus revenue fund. According to Representative Dan Cooper it should pass, but he says "The only stumbling block might be the governor." It certainly looks good. I can't imagine Sanford basically axing 1200 jobs. Hopefully it will keep the company here. Apparently Lockheed Martin itself has invested over 70 million dollars in improving infrastructure and facilities at the Donaldson Center.

Aid Seeks to Save Jobs

[krazeeboi]

Here's an interesting thread in the NC forum about Google's decision to build a facility in the town of Lenoir and the incentives the state offered the company to do so. Being that Google still has an interest in Goose Creek (and possibly a site near Blythewood), this should be of some interest to us given the discussion at hand.

[Spartan]

Its intersting that it appears NC used a better incentives package than SC to lure them to Lenoir... if that doesn't validate the use of incentives then I'm not sure what does.

[krazeeboi]

Do we know that NC offered a better incentives package? SC officials are tight-lipped about this deal all around. Furthermore, Google has stated that it is still considering the site in Goose Creek.

What do you think about the argument that the incentives package is too much in comparison the benefits that area may reap?

[Spartan]

its possible that my previous statement was premature. But the benefits of that many white collar jobs far outweight the costs of the incentives. This is a situation where I think that the presence of more white collar jobs iwl ultimately benefit our state.

[krazeeboi]

Here are some relevant statements about incentives from the New Economy Index, a report about how states are faring in the knowledge-based economy, in the section "Economic Development Strategies for the New Economy":

Make incentives contingent on higher wages. If states give public money to private companies, they should at least expect their investment to lead to a higher standard of living. But it