Corporate Welfare

In the news all over: “Dell Leaving Forsyth County, 900+ people to loose their jobs.” NC Governor says that Dell will have to repay “every red cent” of the incentive money paid to them..

That was a few days ago. Now, we are hearing that only a portion has to be repaid. Once again, taxpayers are getting shafted. Now it seems that large portions of this incentive money will not have to be repaid. If the original contract was as we were led to believe, why not? Do all our politicians and local officials involved in this deal have their pants on fire?

It’s not too hard to figure, and everything points to the fact that the contract was not as we were led to believe. Let’s see who really gets to repay this money? Another tax increase fits right in here.

Why do we have to pay any money at all to get a company to locate in our area or any area? How much federal tax incentives did Dell get for constructing a new facility? Traditionally a corporation and its stockholders assumed the risks associated with expansion. How did it turn around so that cities and states were called on to extend “Corporate Welfare, and many instances, extortion in the guise of, “we’re looking at several locations but haven’t pinpointed any one location./ So now the bidding starts. Back and forth it goes.

Remember a few years ago when Southern states were bidding to host a new Mercedes plant? Alabama finally won the bid, but some reports said that it nearly bankrupted the state. I wonder who paid the bill on that one.

Did it all start several years ago when Major League Sports Franchises began to hold their host cities hostage with the threat of moving such franchises to other cities?

If this was an individual trying to secure monetary favors, he would be indicted for extortion or blackmail. Corporations and Sports organizations seem to have some kind of super immunity.

What about the well-known names that used to be a part of Alamance County; Burlington Industries, Glen Raven, West Point Stephens and others that are now gone? How about the multitude of small businesses that are part of any economy? Most of them depended on giving good service, and earning the trust of the neighborhood. If they made a good product or gave a good service, they prospered, and the whole community prospered.

With all this talk about taxes and welfare for individuals, let’s remember that welfare is welfare whether given to an individual or a corporation, and remember, too, who pays the bill.