12/8/2012 11:12 AM
I might should start this as a different thread, but thought about it this morning when I saw a study from California Berkley.
Maybe Detroit and the states wouldn't be in so much trouble if they would stop handing out tax credits to businesses to encourage them to stay or expand or attract them. I know the flip-side, if they don't offer the credits businesses say they will move or not come, and there are job loses from that and that affects tax revenues as well.
I guess the bigger question is, if a tax credit is given, how will that affect schools and police and fire, probably the most important items the government controls and will affect if people will move to the location in the first place. Will the jobs created actually off set the credit?
I saw a study by Cal - Barkley that had figured out Walmart cost the state of California $87 million dollars because of the low wages they pay and many of their families having to rely on state benefits such as food stamps and no health insurance probably taxing the medicaid there. Also part of the study as I understood it was because of all the tax breaks and credits given to Walmart. I know there is probably another-side to the story as well, such as be happy for those jobs for the people. I guess what I'm looking for is a happy balance of profits for business yet living wages paid, so these people have money to spend and save, along with less need from the state to help support citizens. Think about it, if the state didn't support those low wage earners and they left to find other work, what happens to the businesses when they can't find employees?
Maybe cities and states need to get together and tell corporate America the time of us competing against ourselves will end. You choose to come to a city because of the cost of living, or the resources, or the skill of the labor, the infrastructure, etc. not so you can expand your corporate profits and leave the burden of maintaining the city or state on the backs of it's citizens. Of course this is a broad statement and there are many instances of business becoming part of the community they are in, particularly small businesses.
Ok, I'll get off the soap box and go back to dreaming about Utopia or Disney World (yea I know they are just a corporate pirate too, they just hide it so well)
Mel
Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO