Comments on: Dell's N.C. plant the target of a lawsuit

Nonprofit lawyers are challenging the state and local governments over Dell's generous subsidy package.

[KTLA_knew]

And next time?

Good job, NC. Wonder what the next company will think when you promise them a few incentives to come in and build.

Think they'll look kindly on a state that makes big promises, then pulls the rug out from under you once you;ve committed millions to building in the sate, based on false promises?

NC may gain cash in the short term, but will loss money in the long term if the law suit is successful.

[thatchman1]

Not NC

This plant could easily be in China. Period.

[ahickey]

Same thing happening in Ireland with Intel

Intel want to build a new FAB plant in Ireland but the EU has said the package offered by the government is too large, so it is all up in the air.

This is short sighted politics.
If 1,000 people are emploted at $20,000 per employee that is an extra $20 million in the ecomony each year. When a large manufacturer moves into an area it's suppliers have to follow as well as it's logistics providers. So, 1,000 jobs in a place like Dell is probably closer to 2,000 jobs in supporting industries. So, we are up to $40,000 a year (Assuming $20,000 a year)

Also, based on these 2,000 people being employed other product and service companies can set up. Cars, houses, furniture, clothes, restaurants...

Yes, it is an expensive way to encourage industry in your local area, but the cost of it is definitely out weighted by the cash flow and growth in the community.

[M A]

What about the taxes?

I dunno about that, you can say that city/state governments could give these kind of tax-breaks for the jobs & the economy, but remember what the tax money would have been used for. What use is it to have a job that lets you buy a car if nobody's paying to maintain the road you're driving on? Who's going to pick up your trash? Etc etc.

The alternative is of course to raise taxes in the city/state, but then everyone else who's not working at Dell/Intel/whatever will want to move out. Which constituents are more important?

[Earl Benser]

Deals are needed...

... too many people in NC think that tobacco is still a legitmate
crop and needs government subsidies, including elements of the
state government. Something needs to be done to get NC
moving into the 21st century. SC has attrracted all sorts of
businesses to replace tobacco and textiles with tax benefits.
Those benefits are just as useful in NC, and Dell is a very nice
company to move in with what NC needs, JOBS!!!!!.

Now people need to figure out how to get someof the new
businesses to come into Western NC - so far, the Raleigh-
Durham area has landed most of the new businesses. It also has
population and education resources, but not all of them.

And I live in NC, so flamers, bug off!!!!!!!!!!

[drudixon1]

Are you Crazy?

1st myth. Those Dell workers won't make 20,000 / year. Most likely they'll make areound 15,000. Dell does not assemble (note assemble, not manufacture) pc's with employees, they use temps! Think about it, they don't just squeeze cost out of supply chain and by buying the cheapest/worst parts out there, they squeeze it out of their employees too. They're not a good thing for NC or its people!

[FirePig]

Constitutional issue is a huge stretch

The issue which forms the basis of the Dell lawsuit is a huge stretch of the US Constitution. The plaintiffs claim that they can extend Constitutional prohibitions directed at Congress to the state legislatures even though this was not written in the US Constitution. The US Constitution states that powers not specifically granted to Congress are granted to the States. Logically, if Congress is prohibited from favoring commerce in a particular state then the Constitution does not prohibit any state from trying to provide more jobs (and therefore more taxpayers) in their own state.

[zizzybaloobah]

Legal or not, incentives can backfire

Here in Baltimore, several companies, that had received substantial incentives for keeping operations in (or moving to) Baltimore, skipped town (either because of downsizing, off-shoring, bankruptcy, whatever). Now these previous shuttered industrial sites are shuttered again, the neighborhoods are still in a shambles, and the local municipalities are even deeper in the hole due the lost revenue during the free-ride these companies took.

Incentives unnecessary

Studies done earlier this year demonstrate that 95 percent of companies given incentives to move in-state would have moved in-state anyway. The incentives scam is just another case of corporations grabbing as much of the public wealth as the game allows. Companies move here because of roads, airports, cost of living, recreation, education system, etc.

[carwaterguide]

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