Home Depot wants Cobb Co. to give company $200 million

[Cameron H]

Originally Posted by jsvh

Ah. So since I paid $1k more in income taxes this year due to my raise I should get $900 back? The government is still netting $100 more.

I give up.

[evannole]

Originally Posted by Cameron H

I give up.

Probably the best course of action... some people will see only what they wish to...

[jsvh]

So you really think special tax breaks approved on a one-off basis for only the large companies the county selects is fiscal conservatism?

[0nyxStation]

Originally Posted by Cameron H

Really? So your bank gave you "free money" to buy your house? They must love customers like you!

IRBs are often called pass-through bonds (or at least they were in my day). A private entity (in this case, The Home Depot) borrows money by issuing bonds. A bank purchases the bonds, thereby providing financing to the company. The bonds "pass through" an economic development agency in order to be classified as tax exempt -- meaning the investors who purchase the bonds do not have to pay taxes on the interest income. This makes the bonds more attractive, reducing the interest rate the company must pay on the borrowed money, and thereby reducing their financing costs.

The local government economic development agency isn't on the hook for the principal or interest. It isn't spending taxpayer dollars on "corporate welfare." In fact, the increased economic activity in the local jurisdiction typically means that tax revenues increase. In this case, Cobb County will directly gain approximately $400,000 per year in additional revenues just from The Home Depot spending its borrowed money in the county, setting aside the revenues gained indirectly from the company's expansion in the county.

What's really hilarious about seeing this kind of thread on the C-D Atlanta forum is that IRBs really took off in the South after WWII -- it's how we lured a lot of that Northern industry down here. They became so widespread during this period that restrictions were ultimately slapped on them. It's a fair bet that more than one of the less-than-informed critics in this thread owes their job to IRBs.

But I guess it's increasingly the case that "public-private partnerships" are only popular around here when someone gets trains or bike paths out of it. Jobs and economic growth are a scandal.

ETA: It's like trying to explain something to a brick wall. Back to lurking!

[JoeP]

Thank you for posting something actually factual on this. The MDJ and AJC minions are desperate for attention and nothing gets the attention of unintelligent readers more than "corporation gets taxpayer money.

"

You keep telling yourself that. Uninformed indeed.

AM radio shows have really dumbed down America.

[AnsleyPark]

Originally Posted by DawgPark

Thank you for posting something actually factual on this. The MDJ and AJC minions are desperate for attention and nothing gets the attention of unintelligent readers more than "corporation gets taxpayer money."

It's comical that so many people actually think there is a board of 6 county leaders that decide, "yeah, let's take $200 million from school kids/teachers and give it to a corporation so they will remodel an IT facility."

Independent thought and economic literacy are truly dead.

Good point. I think folks don't quite look at the big picture in these types of scenarios. While there may be a tax abatement for HD, the jobs, commerce and real estate development that they will create with the abatement results in, hopefully, more taxes than the amount of the abatement over time.

[J2201987]

When a conglomerate is in doubt, come on over to Fort Cobb!!! We play fast and loose with our money. You won't lose!!!

Originally Posted by DawgPark

It's comical that so many people actually think there is a board of 6 county leaders that decide, "yeah, let's take $200 million from school kids/teachers and give it to a corporation so they will remodel an IT facility.".

Why is that comical? Sixteen months ago 4 out of the 5 county "leaders" decided it was beneficial to fork over $300 million dollars to a corporation, which could have went to "school kids/teachers"

[therealpattman]

So, Cobb has plenty of money to support massive corporations, but won't join MARTA to help ease traffic in the metro area most of which is caused by these same corporations?