Dell used "patriotism" to press NC for concessions

[G_j]

Dell used patriotism to press NC for concessions
(http://main.nc.us/link/526)

Dell pressed state to forgive all taxes, notes say

By J. ANDREW CURLISS AND DAN KANE, Staff Writers

Among the 4,000 pages of documents released by N.C. Department of Commerce officials this week were numerous pages of Secretary Jim Fain's handwritten notes as he negotiated with Dell Inc. to lure a computer assembly plant to the Triad.
The notes reflect that Dell executives pushed hard for the state to eliminate all of Dell's tax burden -- and at times struck patriotic tones with Fain.

In early June, Fain recounted a conversation with a Dell executive, whom he noted had spent a lot of time outside the U.S.

"Think we're on the brink of a crisis ... other countries get it," his record of the executive's views shows. The Dell official said he was "afraid we're going to get whipped in econ. -- not in a war. We truly want to continue in this country. If we can't get states to get creative -- or the fed gov't ...

<snip>
A few weeks later, the same executive offered similar comments as the state was slow to meet Dell wishes, according to Fain's notes.

"If a state like N.C. can't get after this, I'm worried for our country -- there's a certain amount of patriotism here," Fain's record of the conversation shows.
..more..

[K-W]

1. If you think that China gets it, and the US doesnt...

maybe it is you who doesnt get it Mr. Dell.

[Wisc Badger]

2. Greedy Corporate Bast*&d!!

:puke: :mad:

[purduejake]

3. It's a crime.

The people have to pay taxes for the benefits of "security" and so many other things offered by this country, but the people who profit from it most don't? WTF?!?

[Fenris]

4. Oh vomit.

[President Jesus]

5. and Michael Dell uses cash to buy GOP politicians

full report

[geniph]

6. I love corporate welfare whiners...

"Give us more money, more sweetheart tax deals, MORE MORE MORE, or we'll take our bat and ball and go home!"

I don't see small businesses, the backbone of our economy, getting any of these kinds of giveaways. I really have to wonder sometimes if the overall benefit to a community from a global multinational who's firmly attached to the corporate welfare teat is worth it - are the jobs they provide really worth the tax giveaways, the land grabs, the environmental damage, the increased burden on the infrastructure? I don't think communities often really do a serious ROI on getting a Dell or a Walmart; they see the jobs, but they don't see the cost of the jobs to the community.

[Ezlivin]

8. Small businesses mean nothing to this administration

My wife and I have operated small businesses here in Texas for 8 years. Time and time again we read of all the tax breaks and other goodies offered large businesses just for locating here.

My wife couldn't even get a loan for her business unless "her husband" co-signed on the loan. She had to go to several banks before she found one that would treat her as an equal. (The loan officer was a woman. She's since been replaced. The GOB network is alive.)

Please, don't get me started on how small businesses are taxed.

[geniph]

11. I absolutely agree with you!

My husband also owns his own business, and HE's not getting any sweetheart tax deals. This administration is totally contemptuous of small business - after all, you don't get those $100,000 kickbacks from owners of small businesses.

[Me.]

7. Have You Ever Tried To Call Dell For Technical Help?

Strictly New Delhi! They were so wonderful they sent that clunker back and bought an IMac

[KharmaTrain]

9. Yep...Give 'Em Yet Another Break...More Coporate Welfare Queens

Wanna bet this company plays fast and loose with books and investors. I could always smell this about companies like Dell, Gateway, Di-Tech and some of these other "techno-conglomerate".

What Joe Ditto-head doesn't think about is how the corporate tax breaks these companies get...especially from state and local entities...doubles their local tax burden. It always sounds nice to get x number of jobs in an area and how that will help the local restaurants and shopping malls, it means my school district, streets department and other basic services get shortchanged. Patriotism my ass...these companies feed the greed machine where self-enrichment means far more than long-term overall good.

[AP]

10. IIRC, the break Dell ultimately got was a credit for each computer

they sold.

Since they probably don't pay taxes on sales in NC (unless it was a direct-to-consumer sale in NC?), it's not exactly a rebate against sales tax. In fact, it's sort of like NC subsidizing the sale of comptuers to retail consumers in other states.

Nonetheless, at least a credit on an actual computer requires that Dell makes computers before they get any money from the gov't, which means that an employee got paid and supplies were purchased.

I know very little about this issue, but I suspect that the democratic governor really was trying to do the right thing with Dell. At least it looks like he didn't sell out to them if this is what they were asking for.