Why give any money to a company that employs thousands. We should just give that money to the welfare system so that more people can sit on their @$$ all day.
LOLz… I agree with your position, unfortunately it is not the reality that we currently live in. The fact is that NYS has one of the highest, if not the highest cost of doing business in the country. If you were to open a business, would you choose to open it in NYS, where the taxes, regulations, insurance and utility costs are so high, or somewhere more favorable to business? Bearing in mind that all of the above come directly off the bottom line. Many businesses operate on thin margins, particularly in the food industry, where margins can be less than 5%. The differences in the cost of doing business can be the difference between having a viable business, or one that isn’t profitable.
The system in NYS has been gamed over the last 40 yrs by politicians of both parties; providing them with undue power and influence over the private sector. The politicians now get to decide, instead of the free market on who the winners and loser can be. It is a system set up for corruption and kickbacks and the only people in the state getting rich over this arrangement are the politicians.
I’m sure if the business owners had their way, they would prefer not to have to prostate themselves at the feet of politicians to gain favor, but that is how the game is played in NYS, so you play by the “rules”.
But lets look at the Chobani numbers a bit closer. Chobani is receiving an $18.5M tax credit to help finance a $90M expansion. In return, this expansion is projected to increase employment by 450 people, which will raise the total employment to 1650+. There are stipulations that the minimum salary must be no less than $12/hr plus medical benefits. So let’s assume the average salary for Chobani employees is $15/hr ($31200 annual salary). Based on current State and Federal Income Tax withholdings, the payroll alone will account for $11.2M in state and federal income tax payments each year. This doesn’t take into consideration any of the additional corporate taxes that Chobani will pay, or the additional commerce that is stimulated in the local economy as a result of these high paying jobs. Dairy farmers in the region are already seeing great benefit to the plant. Based the rough calculations, the net gain in taxes in realized in under 2 yrs.
Unfortunately, for every Chobani, there are 10 or more Solyndas that are dismal failures.
Far too many people fall for the line “we can’t afford a tax cut” or “tax cuts for the wealthy”, when the real issue is tax revenues generated. Both the Reagan and Bush tax cuts greatly increased overall tax revenue. After all, it is the tax revenues that pay for all the programs that a large segment of the population wants, not the tax rate.