Atlanta gets another Fortune 500 HQ!!! (leasing, credit, how much)
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I agree wholeheartedly. The issue is we have some fairly good schools but our employers in state tend not to value them enough. GT, UGA, and Emory put out plenty of good grads but there's little incentive to stay in state especially for the out of state students who paid higher tuition when there are higher paying jobs elsewhere.
If a GT grad is lured to Texas for 10-15% more pay at a more prestigious employer, what are we doing to stop that? The state of GA subsidized the state schools significantly even for the non-residents and we're letting the best and brightest go. I think we need new incentives for grads who take jobs in state to get loan reimbursements or incentives for employers. These are jobs that from GT at least averages 50-60k off the bat and can go much higher.
Long term, an increase in the # of college educated people improve the area and attract more employers. Using tax incentives to buy up existing jobs is relatively short sighted when we've got these grads making this kind of money getting pulled out of state every year.
I disagree. Georgia, according to the Pew research center, is considered a highly "sticky" state. This means that a large percentage of Georgians who were born there still live there. It's also, magnetic, meaning that it attracts newcomers. This has to be because of good jobs here.
I challenge anyone on here to answer for me why Alabama with its generous tax breaks for the wealthy and corporations is NOT the beacon of southern business? Why is Alabama so relatively poor compared to other states? I will only be convinced that less taxes is good for business when someone can answer for me those questions.
Your question is flawed in that it assumes that tax breaks are the only factor which obviously is not the case. As a matter of fact, Alabama had one of the lowest unemployment rates in the country prior to the recession so those incentives obviously had some impact.
If you're wondering whether or not low taxes is good for business just ask the businesses. Look at where they're choosing to locate. Texas is another example of a low tax state, not only for businesses but also has no state income tax which I'm sure makes the management level of these big companies very happy.
Your question is flawed in that it assumes that tax breaks are the only factor which obviously is not the case. As a matter of fact, Alabama had one of the lowest unemployment rates in the country prior to the recession so those incentives obviously had some impact.
You are halfway correct. When compared to some of the other "deep-south" states Alabama has an unemployment rate of 8.4% which is lower than Georgia's 9.3%, Mississippi's 9.1%, and Florida's 9.4% as of last check in April 2009.
But to say that Alabama has the one of the "lowest" unemployment rates in the country is a bit hyperbolic to say the least. There are AT LEAST 25 states with unemployment rates even lower than Alabama's with Wyoming at the top at 3.9%.
Quote:
Originally Posted by J2rescue
If you're wondering whether or not low taxes is good for business just ask the businesses. Look at where they're choosing to locate. Texas is another example of a low tax state, not only for businesses but also has no state income tax which I'm sure makes the management level of these big companies very happy.
I'll give you that. Texas's unemployment rate is at 6.5%. You have a good point.
Your question is flawed in that it assumes that tax breaks are the only factor which obviously is not the case. As a matter of fact, Alabama had one of the lowest unemployment rates in the country prior to the recession so those incentives obviously had some impact.
If you're wondering whether or not low taxes is good for business just ask the businesses. Look at where they're choosing to locate. Texas is another example of a low tax state, not only for businesses but also has no state income tax which I'm sure makes the management level of these big companies very happy.
I also took the liberty of looking at the unemployment rates of many States, Alabama included in October 2007, seeing as how the recession according most news sources didn't start until December 2007. Even then, Alabama STILL didn't have one of the lowest rates, according to your claim.
I am still skeptical of this "less taxes=higher prosperity" claim, but to each his own, I guess...
Look at it under this scenario.
You run a small business "Acid Snakes"
Your making a good living and business is good, your selling your one type of Acid and want to diversify. Currently, on every dollar you make for you and your company the parasitical government takes 20cents. Ok, you can live with that. You still can afford to provide jobs, pay benefits, and use public infrastructure paid for with the 20 cents on the dollar.
Now a new group of government parasites come in. Nothing changes with you and your business at 20 cents because you are motivated, charged up, your employees are happy, your kids are happy, your wife is so wired for sound that every night is nookie night.
All the sudden nothing changes, there isn't anymore added infrastructure with the exception of a few new government buildings and beaucrats taking relaxing trips to China, Europe, or maybe a tax paid Broadway show.
Then on January 1st you find out that your 20 cents is now 30 cents. Your benefits that you give to your employees are now taxed as income at 30 cents instead of protection for possible liability, your Acid company boiler produces .03 NoX levels which is 1 point higher than the new beaucratic mandate that just took effect, oh no, with all of this you are now up to an implicit tax rate of 42 cents net on the dollar and you know this is only the beginning.
You may still be motivated but oh no! If you make just one more dollar the progressive rate takes effect as you just past the benchmark by a buck! If so, your 42 cent rate becomes 51 cents.
Long story short, motivation shot, to maintain your household you have to layoff people, this creates stress, the wife cuts off nookie night and takes off with Tim the dealer who works in cash for a tax free status since you are paying, your children are sad, and your motivation is lost. Heck, why try harder to succeed. Might as well live in the forest since you can no longer stay in Nottingham as that is just for the beaucrats who took your money in the first place.
It is rather amazing that this nation made it a very long time without taxation and government dependency and industry boomed. Then came constrictive taxation. Go across America, the highest umemployment, highest crime rates, highest poverty rates, etc., are where? Locations with the highest taxation and repressive local beaucracies.
I also took the liberty of looking at the unemployment rates of many States, Alabama included in October 2007, seeing as how the recession according most news sources didn't start until December 2007. Even then, Alabama STILL didn't have one of the lowest rates, according to your claim.
I also took the liberty of looking at the unemployment rates of many States, Alabama included in October 2007, seeing as how the recession according most news sources didn't start until December 2007. Even then, Alabama STILL didn't have one of the lowest rates, according to your claim.
I am still skeptical of this "less taxes=higher prosperity" claim, but to each his own, I guess...
You know what? You are right! Though I have to say that given its current unemployment rate, it seems like the strategy of less taxation hasn't faired Alabama too well.
You run a small business "Acid Snakes"
Your making a good living and business is good, your selling your one type of Acid and want to diversify. Currently, on every dollar you make for you and your company the parasitical government takes 20cents. Ok, you can live with that. You still can afford to provide jobs, pay benefits, and use public infrastructure paid for with the 20 cents on the dollar.
Now a new group of government parasites come in. Nothing changes with you and your business at 20 cents because you are motivated, charged up, your employees are happy, your kids are happy, your wife is so wired for sound that every night is nookie night.
All the sudden nothing changes, there isn't anymore added infrastructure with the exception of a few new government buildings and beaucrats taking relaxing trips to China, Europe, or maybe a tax paid Broadway show.
Then on January 1st you find out that your 20 cents is now 30 cents. Your benefits that you give to your employees are now taxed as income at 30 cents instead of protection for possible liability, your Acid company boiler produces .03 NoX levels which is 1 point higher than the new beaucratic mandate that just took effect, oh no, with all of this you are now up to an implicit tax rate of 42 cents net on the dollar and you know this is only the beginning.
You may still be motivated but oh no! If you make just one more dollar the progressive rate takes effect as you just past the benchmark by a buck! If so, your 42 cent rate becomes 51 cents.
Long story short, motivation shot, to maintain your household you have to layoff people, this creates stress, the wife cuts off nookie night and takes off with Tim the dealer who works in cash for a tax free status since you are paying, your children are sad, and your motivation is lost. Heck, why try harder to succeed. Might as well live in the forest since you can no longer stay in Nottingham as that is just for the beaucrats who took your money in the first place.
It is rather amazing that this nation made it a very long time without taxation and government dependency and industry boomed. Then came constrictive taxation. Go across America, the highest umemployment, highest crime rates, highest poverty rates, etc., are where? Locations with the highest taxation and repressive local beaucracies.
Interesting scenario you cooked up there. But isn't government of, for and by the people? If it's parasitical, it's because we allow it to be. Besides that, this country has been collecting taxes since it's inception.
Look at the tax breaks that NC had to approve to draw Apple. Tax breaks do work.
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