Comments on: North Carolina House OKs tax break to attract Apple

Members of the House approve bill that would amend the state's tax laws, providing big incentives reportedly designed to lure Apple.

[kcotham]

All the states do it. This just made CNET's "news" because it concerns Apple. All the big corporations play this game and the states usually beg them to play. This is so not newsworthy.

[ducttape36]

still sucks though. just cause everybody does it doesnt mean its OK. and if it take a company like apple to bring attention to this problem then so be it.

[kcotham]

I agree with you that it isn't okay, but it's hardly news.

[ewsachse]

While would Apple set up shop in North Carolina? In California they have C/Net and Wired right around the corner for self gratifying ego stroking whenever they need it.

For a company with barely 10% of the personal computer market share, they sure get 90% of the press coverage. Maybe C/Net should rename themselves Apple/Net.

[ckh1272]

Yet, you had to click on the article so that you could post that statement. Look up the word "exacerbate" and see what you did wrong. If you believe that CNET is Apple happy, don't click on the article. Less clicking leads to less stories. It's the classic media tactic. BTW, I read it because I was interested in the articled (I'm from NC, don't judge, haha) and I agree (with other posters) the corporate welfare by the states needs to stop. It is nothing but counter productive in the long run.

[steve4lee]

Supposedly they are planning to set up a large server farm in either VA or NC. To make NC more competitive, the new tax law gives a break to companies making big investments in the state but that do not have as large a proportion of their sales there.

[Vegaman_Dan]

The number of jobs this sort of data center will create (100-200 according to the last CNET article) is hard to justify the loss in taxes that the state would have otherwise made. Those concessions may come back to haunt them when it comes time to pay the bill and the taxes simply aren't there.

I don't know of any state that can really afford it these days. If a state pulls a deal like this and gains 100-200 jobs, but then loses the ability to employ 1300 school teachers, is that really a *good* thing?

It's a hard one to answer, and not really one that CNET' coverage is meant to address.

[renGek]

they're probably thinking long term hoping that this would set a trend for more companies to set up shop. Virginia has done a good job building itself up along the lines of silicon valley. Others want that too I suppose. But it can't happen unless there is a good supply of talent there and trying to get people to relocate there is not easy. Much easier during bad economies like today so I'm guessing thats what they are hoping for as well.

[ikramerica--2008]

How are they "losing the ability to employ 1300 school teachers"?

First, using the "school teachers" straw dog is a hack political move, used for decades to raise our taxes even as our education system gets worse. Bravo there. ;)

But beyond that, either Apple comes, or they don't. I don't really care. But if it's either "Apple comes with tax breaks" or "Apple doesn't come because there are no tax breaks", either way, the state DOESN'T GET THE MONEY. So you are talking about a "phantom" 1300 teachers, because no matter what, that money does not exist for you.

They can't lose something they don't have.

But you also have to factor in that NC is not necessarily seen as the tech capital of the USA. So if pulling in companies like Apple and Google works to attract more tech people to the state, it is a long term positive. The answer to "why would I ever start my tech company in NC" becomes "because Apple and Google are there."

Look at what happened with car manufacturing. It was always considered "too expensive" in the USA. But then southern states like SC and Alabama and Tennessee attracted factories for BMW and Mercedes and Toyota, and now the USA isn't seen as "too expensive" but the REAL truth has come out: GM, Ford and Chrysler just can't make cars for less because they are/were poorly run.

Now, everybody and their sister is looking to open up more plants in the south, including the big three, and the benefit is palpable. All because of the initial tax incentives to "plant the seeds" of commerce.

[Vegaman_Dan]

@ikramerica-2008:

"First, using the "school teachers" straw dog is a hack political move, used for decades to raise our taxes even as our education system gets worse. Bravo there. ;)"

School teachers are just an example. It could be any public service. In my city we have had two fire stations close down because there is not enough tax revenue to keep them going. Dozens of schools have shut down, consolidating them into fewer schools that now offer 60+ student classes per teacher. Road projects scheduled for this year are being put off for five years. There are bridges on highways here that are now closed indefinitely, no funds to pay for repairs.

Ignore the problem all you want, but this is just an example of what can happen. You make concessions in taxes to encourage a company to set up shop and find that you've set yourself up for failure later. This happens frequently.

I'm not sure where you got the idea that the money Apple spends in a state is for me or other tax payers. That doesn't make any sense at all.

Don't get so worked up over it. It could be fine, it could be terrible. I'm just advising caution. It would seem wiser to research something before blindly rushing in, which is the habit state governments have a tendency to do frequently.

[ultiweb]

All the negative comments about NC. Has no one ever heard of Research Triangle Park? There are tons of tech companies in NC. Ever heard of RedHat? Low taxes, good weather and a nice place to live. It's not the Beverly Hillbillies. You have to give up the ridiculous stereotypes.

Bottom line, those are poor counties and any kind of opportunity there is a good thing.