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Old 10-25-2011, 05:21 AM
 
Location: New Jersey/Florida
5,816 posts, read 12,590,493 times
Reputation: 4409

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First we give 102.4 million in tax breaks to panasonic to move 5 miles to Newark from Secaucus. Now we give Goya Foods a 80 million tax break to move less than a mile from Secaucus to Jersey City. I understand the concept "Oh but we would lose the jobs" and"the people that work there pay taxes". So they abandon perfectly good warehouses that are probably going to boarded up to shake down the state for handouts. I pulled this piece from an article saying the net new jobs that we will get for 80 million is 9 new jobs. I employ anywheres from 6-10 people so can I tell the state that I'm moving how about some bucks. Gotta love it. The governor says theres no money and they give 100's millions away in tax credits to big political donors. It's one thing if they are attracting(NEW) companies but for someone to ditch a warehouse and carry the operation a couple a blocks away for hundreds of millions in breaks is insane. Cut senior rebates and teachers for the blind and give business breaks to move a few blocks away. I got it now..

With Goya planning to bring in out-of-state workers to the new facility, there are really only nine new jobs being created, Howlett said.
“There are a lot of ways to create nine jobs that don’t involve spending $80 million or more dollars,” she said. “At its essence the state policy is choosing corporations over people.”
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Old 10-25-2011, 05:43 AM
 
Location: Randolph, NJ
4,073 posts, read 8,954,996 times
Reputation: 3262
I haven't followed this story, but I imagine preserving exisiting jobs may be more important than the 9 new jobs. As a business owenr, I'm sure that you appreciate that it's harder and more expensive to get new customers than to retain exisiting customers (or jobs/taxpayers).
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Old 10-25-2011, 06:50 AM
 
Location: On the Rails in Northern NJ
12,380 posts, read 26,784,690 times
Reputation: 4580
Newark has stole 6 NYC companies recently.....this is getting interesting. Hopefully they build Condos and apartments on the sites of all these abandoned warehouses... Jersey City needs to step up its gain too....they have lost some business to CT and NYC...
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Old 10-25-2011, 11:13 AM
 
1,615 posts, read 3,752,929 times
Reputation: 1187
Everyone wants tax breaks for themselves, but when others get them, they complain
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Old 10-25-2011, 11:21 AM
 
232 posts, read 611,658 times
Reputation: 110
And what if Goya was moving all those jobs out of state ? Real easy to complain that they are staying in NJ but what if another state was willing to give them the tax break ? Would you have a problem losing all those jobs or would it be worth it to offer the tax break to keep the jobs in NJ??
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Old 10-25-2011, 11:30 AM
 
Location: NJ
17,574 posts, read 46,033,396 times
Reputation: 16271
From a quick search it seems like Goya was considering moving out of NJ. If that is true it makes absolutely no sense to look at how many "new" jobs they are creating. The only meaningful comparison would be:

A. Goya moves out of NJ - how much tax revenue does NJ get?
B. Goya stays in NJ - how much tax revenue (net of the tax credit) does NJ get?

Factor in things like NJ having to pay unemployment if jobs are lost and any other items.
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Old 10-25-2011, 12:41 PM
 
Location: West Orange, NJ
12,546 posts, read 21,353,711 times
Reputation: 3730
i agree with manderly's post. i realize it doesn't look spectacular that we give this tax break to the company to net 9 new jobs, but the problem is, how many jobs did we stand to lose? it would be preferable for these breaks to go towards attracting new business, but we have to compete to retain as well. it's a tough spot.
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Old 10-25-2011, 12:52 PM
 
11,337 posts, read 10,993,307 times
Reputation: 14993
So Goya gets to keep more of the money they earned and own. Good. A little less injustice in the world. I don't care how or why they are getting to keep their own property. It works for me.
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Old 10-25-2011, 01:42 PM
 
Location: NJ
31,771 posts, read 40,541,828 times
Reputation: 24590
jobs are more important than tax revenue. tax revenue is just waste.
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Old 10-25-2011, 04:10 PM
 
4,285 posts, read 10,735,110 times
Reputation: 3809
Quote:
Originally Posted by manderly6 View Post
From a quick search it seems like Goya was considering moving out of NJ. If that is true it makes absolutely no sense to look at how many "new" jobs they are creating. The only meaningful comparison would be:

A. Goya moves out of NJ - how much tax revenue does NJ get?
B. Goya stays in NJ - how much tax revenue (net of the tax credit) does NJ get?

Factor in things like NJ having to pay unemployment if jobs are lost and any other items.
I posted about this when it was Panasonic got a deal like this about a year ago from moving to Newark from Secaucus.

It set a bad precedent. Of course Goya and every other company is going to "consider moving out of state" if it means NJ will give them a huge tax break like this to stay. Some might actually be considering moving out of state, but everyone is going to claim to be considering it now that these huge deals are being given out.
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