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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.
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Virginia is one of the lowest taxed states.
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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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That doesn’t mean it’s sensible to continue doing so. After decades of tax cuts for large corporations America’s infrastructure is crumbling. The middle class and working poor have continued to pay taxes while they waited to see the benefits of trickle down economics and it has never materialized, instead they are sinking deeper into debt and so is their country. It makes no sense to offer a $600M subsidy/handout to a corporation that already pays no federal taxes and whos CEO’s wealth grows by that amount in a matter of days.