Rolls-Royce will invest $600 million over the next several years to modernize its Indianapolis operations. State and local taxpayers will contribute about $35 million in economic development incentives to the British-owned company towards that investment on top of the nearly $17 million the company has received in economic development incentives since 2006. Half of that money will come from the City of Indianapolis, which says it lacks revenues to pay for basic city services.
Did I mention there are no new jobs, planned to be added by the company? We're supposed to just be gracious the company is investing in our state instead of somewhere else, even if tax revenues to state and local government take a big hit that either means budget cuts or higher taxes for other taxpayers to offset the lost revenues. We can hope Rolls-Royce prospers and adds more jobs in the future, but that would be hoping for more wars since the company derives its revenues from military contracts for aircraft and weapons systems.
16 comments:
What exactly are they building or buying that is worth $600M? And isn't this a tax credit, as in RR not only doesn't pay any taxes, but instead we actually pay them?
That is correct. The state of Indiana will be writing checks to the company because the amount of the credit exceeds what they pay in corporate income tax to the state. That was made possible by a new law passed by the legislature this year. The tax credits approved already this year puts a big dent in state revenues that will have to be made up elsewhere since none of these companies are adding to their payrolls.
This is worse than you think. The technology being installed at the Indianapolis operations will result in fewer jobs than they currently have. Ballard and Pence are either liars or incompetent boobs.
Pence must have flunked out of first grade math.
In our society people tend to forget when you give something to some, you take it from someone else. Regardless of what you give, including Grant monies,tax incentives or welfare, it comes at the expense of someone or something else. NOTHING IS FREE, it all comes from "weeee" the people.
I still think that "creation of jobs" is the wrong measure to be used. It is sufficient for the public if the investments are made. Private sector enterprises depend on customer demands, a factor beyond their control.
Anon 5:38 and 5:55 I understand your frustration but you're blaming the wrong people. This is business as usual in Indiana, a state so incredibly insecure and self conscious that it can't bear to lose anything, no matter how much it costs the taxpayer to win it. The average Hoosier thinks this is a good deal. The average Hoosier thought Lucas Oil Stadium was a good deal. Really. I mean, gosh, it means that Rolls loves us, just like all those Super Bowl visitors. It's because we're so nice. We've got Hoosier Hospitality. Yeah, that's it.
Anon 5:38 and 5:55 I understand your frustration but you're blaming the wrong people. This is business as usual in Indiana, a state so incredibly insecure and self conscious that it can't bear to lose anything, no matter how much it costs the taxpayer to win it. The average Hoosier thinks this is a good deal. The average Hoosier thought Lucas Oil Stadium was a good deal. Really. I mean, gosh, it means that Rolls loves us, just like all those Super Bowl visitors. It's because we're so nice. We've got Hoosier Hospitality. Yeah, that's it.
I support taxes being as close to zero for everyone. However, sending checks to the crony connected is wrong.
Why did no tv station take a look at the numbers being touted?
Did we not give millions to another British company to run the airport into the ground and more money to leave prior to the new terminal being opened for 1 Billion dollars plus millions to already repair the new building.
The news reports I read all indicated there were no new jobs being created as part of the investment.
Years ago I read an article in a magazine about the War Between the States. It was not about the Civil War. The theme of the article was how the different states had been pitted against each other in an economic war among themselves by Multi-National Corporations. It was well documented about the black mail these companies engaged in. Various so called incentives were analyzed and assessed concerning the amount of direct and indirect subsidies these companies demanded and received. This is somewhat like the Professional Sports parasite owners, although the article itself dealt with mainly manufacturers.
The article mentioned one way to stop the so called incentives was to institute a Federal Tax on any tax incentives, subsidies, etc., offered to these companies by the states. The incentives would be taxed at 100%, in other words if a company received $35M in tax incentives, they would be liable to Federal Government for $35M in taxes.
The article did not mention Crony-Capitalism, but this is what these incentives have evolved into. The Average Joe and Jane, and the all the other companies that do not receive tax incentives have to pay the freight to support various government activities.
We're going to pay twice. High tax states like Illinois and California are now in death spirals. Companies are packing up and moving to other states. State and local governments in those states are not going to be able to pay their bills. Illinois is now in a state of crisis with a stand-off between a Republican businessman governor and an overwhelmingly Democratic legislature that created the death spiral Illinois now finds itself. Congress will be pressured to come to these states rescue. Indiana shouldn't gloat. Taxes on individuals and small business owners in this state will have to be raised substantially to support a model where we allow large, multi-national corporations to operate within our state tax free.
Gary, that's why I have come around to Murray Rothbard's position: repudiate all these government debts. And then add a constitutional amendment at state and fed levels they do not allow government to go into debt or pay pensions at all. The counter-counter coup to Alexander Hamilton's counter-coup at Constitutional Convention against American Revolution.
They didn't have to use a gun. We did not get kissed either.
Post a Comment