or…In Which We Find that Governor Markell finally agrees with me. (LOL) This is worth reading in full. It is one thing to understand the downside in participating in the 50 state race to the bottom, and another to propose a solution.
The result is a market failure in which neither side is motivated to fix the problem. State and local policy makers can’t unilaterally opt out without potentially negative consequences for their constituents, while businesses have a fiduciary obligation to pursue these short-term direct incentives. Competition for jobs should not be seen to hinge on which government can write the biggest check to an employer but on the kinds of things that officials in Delaware and other states spend so much time on to make their communities places worth living in: the quality of schools, work force development programs, the transportation grid and other infrastructure, and the overall quality of life.
Exactly. Invest in the stuff that makes the state an attractive place to locate or start a business; invest in the stuff that no one can take away from you, that you can market to others down the line.
His proposed solution:
The solution is straightforward: Congress should institute a federal tax of 100 percent on every dollar a business receives in state or local incentives that are directed specifically to that company. This would not include investments in public infrastructure, work force development or other investments that can attract employers while also providing a significant long-term benefit to taxpayers.
I like it. The current GOP-controlled Congress won’t do this, of course, but someone really needs to pay attention to the absurdity of the second richest man in America waiting for states and municipalities to throw money at him and his company. When most of these states and municipalities already have fiscal challenges that they cannot solve by going to the capital markets or by selling some Amazon stock.
Wonder if we could get Senator Carper or Coons to take this up for us?
Yes, this is a great strategy. It is about 9 years late, but a great strategy.
I agree, a damn good way to stop corporate welfare in it’s expensive and frequently worthless tracks. Coons & Carper? I can’t even imagine the excuses they will make but rest assured they will find a way to beg off and not vote for something like this.
9 years late, but good to have a former Governor talking about this as the corporate asks get even more outrageous. FOXCOMM got a $3 BILLION deal from Wisconsin, that also helps them operate outside of the law. Time to let the states do what they are supposed to do and that is not to improve the balance sheet of its businesses.
“but good to have a former Governor talking about this as the corporate asks get even more outrageous”.
Are you kidding me??? You can’t be serious!
WOW, Is this the same guy who gave Fisker, $21.5 Million? And, on top of that we had to foot the bill for the electric at the former GM plant.
The same guy who gave who made the sweet deal with Bloom Energy, giving us a surcharge till 2033?? AND said that natural gas was a renewable energy.
What a crock!! He gave away over $200 million, now trying play spin doctor. And you guys are giving him a pass!! You should be holding him accountable, for leaving the State in such a mess. The money that is going to Bloom, could be going to our infrastructure or schools!
Really, that is all you have to say? YAWN, back at you. Because he is a Dem, you are giving him a pass. Wake up!
YAWN. I wrote what I had to say. I’ve BEEN writing what I had to say. It is just plain boring that you can’t be bothered to read one damn thing. When you stop being boring, I’ll stop yawning.
Your kidding, right. You make no sense! I agree that they should not bow to the business, BUT, that is exactly what he did! Explain yourself. Your agreeing with him, but he DID all this!
Since when do conservatives fail to do the same thing? Please, by all means, show me a Republican governor who has put a stop to this practice.
I don’t even understand that this fool is having on about, really. Markell writes very specifically about the kind of economic giveaways he specifically sanctioned. This article is to say that this is the wrong approach. It is annoying for these people to show up here, read a headline and then just start screaming about their favorite bete noirs. It would be different if this anono had something interesting to say about it, but it is just the same broken record.
Ok, let’s see if our former Gov., will speak up about this and admit his wrong doings!!!!