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Is it really due to taxes, or do red states just offer better subsidies than blue states do? Taxes only differ less than 10% in almost all cases at the top bracket. My state has the 2nd highest corporate income tax in the country, but we aren't exactly bleeding jobs. Pittsburgh is rebounding from its rustbelt past even if our tax rate is a flat 9.99%. There is much more than simply tax rates at play, because if we follow the logic that high taxes cause unemployment, PA should have the second worst unemployment rate in the country (behind Iowa) but that is not the case. I should add as well that PA is not a right-to-work state. Case in point: second highest corporate taxes in the country, high property taxes combined with personal income tax, yet our unemployment rate is on par with North Carolina's, and lower than most of the Southern states like Tennessee, Georgia, and Kentucky
Last edited by theunbrainwashed; 02-03-2014 at 11:08 PM..
Is it really due to taxes, or do red states just offer better subsidies than blue states do? Taxes only differ less than 10% in almost all cases at the top bracket. My state has the 2nd highest corporate income tax in the country, but we aren't exactly bleeding jobs. Pittsburgh is rebounding from its rustbelt past even if our tax rate is a flat 9.99%.
The difference between Indiana and Illinois tax rate is about 1%.
Is a company going to spend a ton of money in relocation and retraining for 1% savings?????
The difference between Indiana and Illinois tax rate is about 1%.
Is a company going to spend a ton of money in relocation and retraining for 1% savings?????
Probably not, but its not just 1%....its also whatever they can extort out of local governments for canceling property taxes, and refunding taxes etc etc.
Seriously the deals these companies make are obscene.
The difference between Indiana and Illinois tax rate is about 1%.
Is a company going to spend a ton of money in relocation and retraining for 1% savings?????
They're not, unless IN is bribing them with subsidies. This is how Red states work. They need to bribe companies and steal jobs from the North and the Upper Midwest. Taxes, in most cases, have little to do with it. Again, if it were really about taxes, why does my state have an unemployment rate of 6.9% versus 8.0% for KY and 7.4% for TN, states that right wingers brag about have a lot of auto plants and other factories? I also forgot to mention that Pennsylvania has over 12 million people, the two states I mentioned have less people than PA. TN has half the population of PA, KY has 1/3 and both still have unemployment rates significantly higher than mine
They're not, unless IN is bribing them with subsidies. This is how Red states work. They need to bribe companies and steal jobs from the North and the Upper Midwest. Taxes, in most cases, have little to do with it. Again, if it were really about taxes, why does my state have an unemployment rate of 6.9% versus 8.0% for KY and 7.4% for TN, states that right wingers brag about have a lot of auto plants and other factories? I also forgot to mention that Pennsylvania has over 12 million people, the two states I mentioned have less people than PA. TN has half the population of PA, KY has 1/3 and both still have unemployment rates significantly higher than mine
Ky and Tn are coal states.. The EPA has effectively created the high unemployment in both.
Avoidance would imply criminal activity. If they are utilizing existing tax law to minimize their tax bill that is perfectly legal and in fact have a corporate duty to do so.
True. It is not illegal to avoid paying more than you are legally obligated to pay by taking advantage tax laws on the books that are designed to reduce your tax bill.
Government has created many such rules to help business. They are typically referred to as "tax incentives."
Thank China and India because that's where Cat is making all of its money for the last decade.
A quick number crunch says that over the last 8 yrs I installed @ 100 million worth of cat power generation equipment right here in the good old USA And the drive off coal to gas puts Cat in line sell more engines in '14
They're not, unless IN is bribing them with subsidies. This is how Red states work. They need to bribe companies and steal jobs from the North and the Upper Midwest. Taxes, in most cases, have little to do with it. Again, if it were really about taxes, why does my state have an unemployment rate of 6.9% versus 8.0% for KY and 7.4% for TN, states that right wingers brag about have a lot of auto plants and other factories? I also forgot to mention that Pennsylvania has over 12 million people, the two states I mentioned have less people than PA. TN has half the population of PA, KY has 1/3 and both still have unemployment rates significantly higher than mine
Before you get all excited about PA and its UE rate and how it doesn't subsidize business you need to look at Keystone Opportunity Zones (KOZs) and what they do. Aside from that, the Boro of Clarion recently offered to Owens-Brockway Glass to build an entirely modern facility if they would not close down the one that was there. O-B declined the offer, closed the plant and moved production, and only a very few employees, south.
The reality is that PA, until recently, has been bleeding population for three decades. Many of those remaining who are unemployed are totally off the radar due to expiration of benefits. Add in the huge number of retirees in the Commonwealth (2nd only to FL if I remember correctly) and you will have a low UE number.
As a note, I'm one of those who bled out from PA 30 years and moved to greener pastures, although MD has changed a bit in that time.
They're not, unless IN is bribing them with subsidies. This is how Red states work. They need to bribe companies and steal jobs from the North and the Upper Midwest. Taxes, in most cases, have little to do with it. Again, if it were really about taxes, why does my state have an unemployment rate of 6.9% versus 8.0% for KY and 7.4% for TN, states that right wingers brag about have a lot of auto plants and other factories? I also forgot to mention that Pennsylvania has over 12 million people, the two states I mentioned have less people than PA. TN has half the population of PA, KY has 1/3 and both still have unemployment rates significantly higher than mine
New York is currently running a TV add that invites businesses to open there and NOT PAY TAXES FOR 10 YEARS.
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like Tennessee, Georgia, and Kentucky
And the drive off coal to gas puts Cat in line sell more engines in '14
