Tuesday, September 04, 2007

State has paid to keep jobs since '04

It's no secret North Carolina has offered financial incentives of various kinds to companies considering moving here and to existing companies to create new jobs. But I didn’t realize until the other day that since 2004, the state used various kinds of incentives not to recruit or encourage new jobs, but simply to keep the jobs we’ve got. The issue came up when Gov. Mike Easley vetoed a bill that would provide up to $40 million in cash grants to Goodyear Tire & Rubber in Fayetteville if the company invests $200 million in new equipment and meets certain other conditions. That would be a significant step in North Carolina’s economic development policy, but state officials say it would NOT be the first time incentives have been used this way.
Bill Holmes, spokesman for Speaker Joe Hackney, passed along this note from the House’s tax counsel, Caanan Huie:
* This is not the first time economic development incentives have been authorized for retaining jobs. In 2004, the General Assembly codified some of the requirements relating to the One North Carolina Fund. That legislation specifically allows for those funds to be used to encourage job maintenance (as well as the creation of new jobs). (The Fund wasfirst created in 1993 as the Industrial Recruitment Competitiveness Fund, but was limited only by uncodified language that appeared in the budget bills for the next ten years.) The administration felt is was important that they have the flexibility to use those funds to incentivize job maintenance as well as job creation. In addition, some of our tax credits are for items other than creating jobs (i.e. investing in machinery and equipment, exporting cigarettes, producingfilm and TV programs) and have no requirements related to job creation or maintenance.
I also asked Kathy Neal, assistant commerce secretary for communications about these incentives. Here’s part of what she said:
Yes, North Carolina has used incentives to retain jobs and to keep companies from leaving NC.
As you know, JDIGs (Job Development Investment Grants) require job creation. You may not be aware that when the state provides a JDIG grant, in most cases we require that the company maintain existing jobs, as well.
One NC (the One North Carolina fund) is somewhat more flexible. 143B-437.71 (b) states that, “Moneys in the One North Carolina Fund may be allocated only to local governments for use in connection with securing commitments for the recruitment, expansion, or retention of new and existing businesses. …”
Nearly all One NC grants include job creation as well as investment, but a few have focused on retention of jobs.
One example is Philip Morris. A $1 million One NC grant to PM was announced in October 2004, with a goal of helping the company retain jobs at its North Carolina facility in Cabarrus County. The company this year announced it was closing the Cabarrus County plant and moving jobs to Richmond starting in 2008; North Carolina subsequently recovered the $750,000 that had been disbursed to the company.
As for assisting existing industry, it’s important to note that:
· Of the 60 JDIGs awarded since the program began in 2003, 25, or 42 percent, have gone to new companies, and 35, or 58 percent, have gone to existing companies.
· Out of the funds available to JDIG, 70% is going to existing companies.
· Of the 251 One North Carolina grants awarded since 2001, 145, or 58 percent, have gone to new companies; 105, or 42%, have gone to existing companies.
Our overall philosophy about incentives is that, 1) They’re performance-based; and 2) by and large, if a company creates new revenues in the state, those new revenues are typically the source of the incentive, e.g., under JDIG, companies receive a percentage of the withholding tax from the NEW jobs created.
Last but not least: Commerce also has a wide variety of other, non-incentive programs designed to help existing industries/businesses succeed, such as incumbent worker training (in partnership with the Community College System), export assistance, business consulting services and marketing support for travel-related businesses.


Anonymous said...

It seems the basis for these type grants has to do with government making an enviornment favorable to business in order to create or keep jobs for the taxpayers. While this may seem necessary in some areas the idea of government as a job creator has gone overboard in areas which are growing steadily such as Charlotte. Here we have businesses which are vibrant and arguing for subsidies under amendment one laws, which are nothing more than transfer payments to the already well off.

Perhaps in Fayetteville these would be necessary. Not here.

But if government is able to provide incentives by not collecting withholding taxes, which is cited as one method used, we are creating a somewhat arbitrary market of distorted costs for business.

If we truly want to make a business friendly enviornment, we should do it overall.

Eliminate income taxes on business and reduce their property taxes.
Put in place a comprehensive sales tax covering services as well as products.

It can be a simple program, easily administered, which would make a overall more friendly business climate and eliminate much of the paperwork associated with income taxes.

Lewis Guignard

Anonymous said...

tibia money tibia gold tibia item runescape money runescape gold tibia money tibia gold runescape gold runescape accounts tibia gold tibia money runescape money runescape gp buy runescape gold tibia gold tibia item buy runescape money runescape gold runescape items tibia money tibia gold

derfefww said...

I am so happy to get some kal geons and the kal gold is given by my close friend who tells me that the kal online geons is the basis to enter into the game. Therefore, I should kal online gold with the spare money and I gain some kalonline Geons from other players.

Anonymous said...


chen said...

Do you know Rose zuly? I like it.
My brother often go to the internet bar to buy rose zulie and play it.
After school, He likes playing games using these rose online zuly with his friend.
I do not like to play it. Because I think that it not only costs much money but also spend much time. One day, he give me many rose online zulieand play the game with me.
I came to the bar following him and found Arua ROSE zulywas so cheap. After that, I also go to play game with him.

cvxv said...

看房子,買房子,建商自售,自售,台北新成屋,台北豪宅,新成屋,豪宅,美髮儀器,美髮,儀器,髮型,EMBA,MBA,學位,EMBA,專業認證,認證課程,博士學位,DBA,PHD,在職進修,碩士學位,推廣教育,DBA,進修課程,碩士學位,網路廣告,關鍵字廣告,關鍵字,課程介紹,學分班,文憑,牛樟芝,段木,牛樟菇,日式料理, 台北居酒屋,日本料理,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,台北結婚,場地,住宿,訂房,HOTEL,飯店,造型系列,學位,SEO,婚宴,捷運,學區,美髮,儀器,髮型,看房子,買房子,建商自售,自售,房子,捷運,學區,台北新成屋,台北豪宅,新成屋,豪宅,學位,碩士學位,進修,在職進修, 課程,教育,學位,證照,mba,文憑,學分班,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北結婚,場地,結婚,場地,推車飲茶,港式點心,尾牙春酒,台北結婚,婚宴場地,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北結婚,場地,居酒屋,燒烤,美髮,儀器,髮型,美髮,儀器,髮型,美髮,儀器,髮型,美髮,儀器,髮型,小套房,小套房,進修,在職進修,留學,證照,MBA,EMBA,留學,MBA,EMBA,留學,進修,在職進修,牛樟芝,段木,牛樟菇,關鍵字排名,網路行銷,PMP,在職專班,研究所在職專班,碩士在職專班,PMP,證照,在職專班,研究所在職專班,碩士在職專班,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,EMBA,MBA,PMP,在職進修,專案管理,出國留學,EMBA,MBA,PMP,在職進修,專案管理,出國留學,EMBA,MBA,PMP,在職進修,專案管理,出國留學,婚宴,婚宴,婚宴,婚宴,漢高資訊,漢高資訊,比利時,比利時聯合商學院,宜蘭民宿,台東民宿,澎湖民宿,墾丁民宿,花蓮民宿,SEO,找工作,汽車旅館,阿里山,日月潭,阿里山民宿,東森購物,momo購物台,pc home購物,購物漢高資訊,漢高資訊,在職進修,漢高資訊,在職進修,民宿,民宿,整形,造型,室內設計,室內設計,漢高資訊,在職進修,漢高資訊,在職進修,民宿,美容,室內設計,在職進修,羅志祥,周杰倫,五月天,民宿,民宿,整形,整形,室內設計,室內設計,比利時聯合商學院,在職進修,比利時聯合商學院,在職進修,漢高資訊,找工作,找工作,找工作,找工作,找工作,蔡依林,林志玲

Kevin said...


Lorraine said...

cheap wedding gowns
discount bridal gowns
China wedding dresses
discount designer wedding dresses
China wedding online store
plus size wedding dresses
cheap informal wedding dresses
junior bridesmaid dresses
cheap bridesmaid dresses
maternity bridesmaid dresses
discount flower girl gowns
cheap prom dresses
party dresses
evening dresses
mother of the bride dresses
special occasion dresses
cheap quinceanera dresses
hot red wedding dresses

传斌 said...

replica Watches
replica Watches
replica Watches
fake Watches
knockoff Watches
replica Rolex Watches
replica Breitling Watches
replica Cartier Watches
replica Omega Watches
replica Tag Heuer Watches
replica Bell & Ross Watches
replica Panerai Watches
replica IWC Watches
replica Patek Philippe Watches
replica Chopard Watches
replica Gucci Watches
replica Corum Watches
replica Montblanc Watches
replica Jacob & Co Watches
replica A.Dunhill Watches
replica A.Lange & Sohne Watches
replica Alain Silberstein Watches
replica Audemars Piguet Watches
replica B.R.M Watches
replica Baume & Mercier Watches
replica Blancpain Watches
replica BMW Watches
replica Breguet Watches
replica Burberry Watches
replica Bvlgari Watches
replica Chronoswiss Watches
replica Concord Watches
replica D&G Watches
replica De Witt Watches
replica Dior Watches

Anonymous said...

Replica Handbags
Fake Handbags
Knockoff Handbags

Replica Louis Vuitton Handbags
Replica Gucci Handbags
Replica Chanel Handbags
Prada Handbags
Replica Fendi Handbags
Replica Dolce Gabbana Handbags
Replica Chloe Handbags
Replica Jimmy Choo Handbags
Replica Thomas Wylde Handbags
Replica MiuMiu Handbags

Replica Balenciaga Handbags
Replica Coach Handbags
Replica Lancel Handbags
Replica Hermes Handbags
Replica Marc Jacobs Handbags
Replica Anya Hindmarch Handbags
Replica YSL Handbags
Replica Mulberry Handbags
Replica Givenchy Handbags
Replica Valentino Handbags
Replica Versace Handbags
Replica Cartier Handbags
Replica Marni Handbags
Replica Bottega Veneta Handbags
Replica Loewe Handbags
Replica Kooba Handbags

Replica Bally Handbags
Replica Burberry Handbags
Replica Christian Dior Handbags
Replica Juicy Couture Handbags
Replica Ferragamo Handbags
Replica Celine Handbags