Quote:
Originally Posted by nfotiu
It created a new tax base in Virginia, period, and that is worth many times as much as 600 million dollars.
There are wildly different local tax rates, state tax rates, state income tax rates, property taxes across the various states and localities in the country. Would you be fine then if they just picked the lowest taxed state/county in the country. It would have probably saved them a hell of a lot more than 600 million.
Basically, they are investing enough in the state that will be very lucrative to the state, that they can negotiate some off of their tax rate. It's not limited to giant companies. Very small, small, and medium companies around here get local and state grants and tax breaks all the time to invest in new ventures.
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The difference our discussion right now is where do you draw a box around and say anything that comes into the box is new growth.
I see drawing the box at the city and state level as a tragedy of the commons in which jurisdictions are incentivized to provide larger and larger tax breaks for the most profitable and largest corporations.
Your position which is just as valid is that Virgina made a good deal for Virgina and therefore makes sense.