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Mackenzie Andersen

manager, Andersen Studio

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States Competing for Corporate Jobs - a Race Toward Global Feudalism?

Some States are competing for corporate jobs by offering an escalating menu of bribes paid for by the general taxpayers.

The following blog post describes what Maine did to convince Tempus Jets to relocate at a former navy air station , which should be enough incentive to attract an aviation company. Although it isn't quite legal, the government bought Tempus Jets with Pine Tree Zone tax Incentives.

As if that is not enough the bureaucrats are promising more "incentives" in the form of "government backed loans". To most a "government backed loan' signifies that the government will co-sign a loan, begging the question : why would a "world class" company like Tempus Jets need the government to co-sign a loan?

This blog post examines the hidden meaning of "targeted sector economics" new linguistics. speculating that "government backed loan" is code for "keys to the redistribution of wealth tool box".

The economic policies of "targeted sector economics" are covering the massive redistribution of wealth from the public to global capitalists which is egged on by the heated competition between states with big government manged economies.

It is time to reconsider these policies.

http://americanpoliticalphilosophy.blogspot.com/2013/09/mrra-and-tempus-jets-drain-more-money.html

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    Sep 18 2013: This is nothing new Texas has gained a huge number of jobs from California's onerous laws.

    I actually think this is a good thing as it creates competition to be business friendly states.

    In addition the states will force in nullification as the government will no longer be able to bribe the states into acquiescence or complying with what ever the federal government has dreamed up.

    The more of this I see the better I like it.
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      Sep 18 2013: You are suffering under the delusion that state governments are actually rational. The Maine state legislature just passed and "Extended and Improved Seed Capital Tax Credit, using as a sales point that Maine is on the bottom of the totumpole in New England for capital investments and whining that New Hampshire gets nine times as much capital investment as Maine.

      But New Hampshire doesn't have a seed capital tax credit administered by the state- New Hampshire's only seed capital tax credits are governed by the municipalities where both the benefit and the cost will have the most impact- which is the way it would work in Maine if our constitution were honored by our legislature, our administration and our courts. This did not enter into the thinking of our legislature or our media. The only thing that registered was that New Hampshire is getting nine times as much capital as Maine.
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        Sep 18 2013: I have live in Calif which is as crazy as states get, I have no such delusions.

        The healthy thing is that if Maine's plan does not work corporations will simply go where they are treated the best and Maine will suffer the consequences as we are here in Calif.
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          Sep 18 2013: I don't follow you. The point is that the states are bribing corporations with tax payer givae ways. Its a direct transference of wealth from the public to private corporations. New Hampshire isn't playing that game and is doing better than Maine. In fact New Hampshire is at the top of the New England totem pole

          This is how New Hampshire sells its self:

          ?Other states in the Northeast offer financial incentives in the form of cash payments for new employment, tax reimbursement programs, tax credits and/or temporary reduction in corporate income taxes. This draws attention away from the true bottom line: These states are simply trying to temporarily defer the pain of their high taxes. At some point, your business will have to pay for the incentive programs it offers you.

          Consider this fact: The more people and businesses that rely on government subsidies, the larger government grows; and the larger government grows, the more taxes needed to sustain this growth—and it's the business community that usually ends up paying for a higher proportional share of new or higher taxes."
          (end quote)

          The "incentive" programs in Maine target "angel" investors who usually want an "exit strategy' in seven years. New Hampshire appears to be targeting a more long sighted economy. The "exit strategy" just means selling the business so the "angel" investors can make their "high growth" profits.
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        Sep 18 2013: The key is that it is a state program which means that the state will realize the consequences as they cannot print money.

        When the constituents get upset the politicians will be held accountable. Consider what happened to Barney Franks and Chris Dodd

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