We never learn.
The incentives given to Mercedes and Hyundai have been a net drain on the state. The Mercedes incentives have cost over $200,000 per job, and now the state is going in for seconds. Why cant we hire at least one person literate in accounting to review these deals. These are probably the same geniuses that wrote the illegal immigration law knowing that it would be stuck down at the first court challenge.
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About $20 million of the $100 million represent cash. Another $15 million in abatements can't be counted as a cost as it presents money the government would never have collected either way. No company, no taxes. The $65 million in training does represent use of tax revenue.
Thats a total investment of $85 million for 1,000 jobs, or $85,000 per job. If the plant is in business for 10 years, that about $8,500 per job. Considering the taxes collected from workers at the plant including state income tax, sales tax, property tax, etc. The secondary benefits from employment for supporting workers and businesses and their resulting taxes. And, finally, the taxes paid by the company, seems like a fair trade.
As federal money will probably pay for much of the job training, federal income taxes from the workers, the company itself and supporting companies and workers, that will be reimbursed, as well.
Then, there's taxes paid on sale of the vehicles.
You're correct, though. Some people never learn.
Not to mention the huge number of people the plants employ. I had much rather see the money go to the plants to supplement a work force, than to have the money given willy-nilly as entitlements to people who have to do nothing to get it.
The initial gift to MB was about $200,000/job. Its government welfare for corporations. When the freebies run out, MB will be gone to another state that offers them better incentives.
If their investment is in the billions, doubtful!
Yes, Mercedes may trickle out a little of their sales revenue here in paychecks, investment, etc. But would they be doing that unless they expected to earn a decent profit, made even better with all the favorable tax treatment?
And where would the profit of a German company go? A profit that is announced at their annual shareholder meeting in Germany? Announcements that are made in German?
