Luring Big Business with our money
Posted March 9th, 2010 at 7:34 PM by Bob SmithThe concept of “incentives” to lure large, select high-profile businesses to an area by political fiat with tax breaks and public cash repulses all of us who believe in free markets—without government meddling.
Yet, many of our state and local representatives support these “corporate welfare” schemes. Fact is; they often fail to live up to promises of providing jobs. Worse, they shift the tax burden to others, and are grossly unfair to all the businesses that don’t receive the benefits.
Brian Balfour reports in the February 2010 issue of “Capitol Connections” (nccivitas.org) on the failures and unfairness of government-sponsored “incentives.” The most flagrant example cited is the $260 million state package (and additional local come-ons) offered to Dell Corporation five years ago. In April 2010 the plant closes and 900 workers will lose their jobs.
Political incentives include special tax exemptions and cash grants. Our Heroes in Wilmington and New Hanover County have surreptitiously offered these perks to several large businesses here during recent years in return for promises of jobs. Using these manipulative, unfair tactics our representatives abrogate their responsibilities to the larger public interest.
State grants come from a political stash called the Job Development Investment Grant fund. North Carolina politicos have awarded 95 grants in the past seven years—23 companies have failed to deliver on jobs promised. Last year the state legislature extended this wasteful boondoggle.
The General Assembly passed HB 1516 that will continue the grant program and dump another $1 billion load on us hapless taxpayers. Of course, our Sen. Boseman voted with all the Senate Democrats to hand out more of our money.
And guess who voted with some other misguided Republicans to pass this bill? Yes, none other than our representatives, Carolyn Justice and Danny McComas.

