David Cay Johnston on Bill Moyers -
Remember the post about the Harley school - a private school being allowed to refinance $7 million dollars in debt TAX FREE? We have discussed the Wellesley Inn with the town of Brighton leading the charge to recover $60,000 dollars in undeserved handouts because even the Wellesley Inn owners could not not follow the not so stringent rules of using local labor.
(Picture from where Bill Moyers website got it from
)
Well - David Cay Johnston was on Bill Moyers last night. Shameless plug here but what a great show. Remember when Bill Moyers was (he probably still is) the target of the radical right’s attempt to replace the Public in Public Broadcasting with Propaganda?
Anyway - Exile wrote about an interview in the City newspaper. Now watch the video.
The premise is the same - the rich are getting richer by shifting their costs to “the poor” though the use of government subsidies and benefits.
The interview - discusses actions benefiting Steve Jobs, Warren Buffet, Steinbrenner and event former Texas Rangers owner George Bush. Watch or read the section on CSX and Amtrak - it is chilling.
Here are some snips from the transcript. The video clip is worth watching.
When asked if he has an objection to rich people
DAVID CAY JOHNSTON: Oh, no. I– good grief. I have no objection to that whatsoever. But get rich by working hard, working smarter, coming up with a better mousetrap. Don’t get rich by getting the government to pass a law that sticks the government’s hand into my pocket, takes money out of it, and gives it to you. That’s not right. That’s not a fair playing field. And Adam Smith, you know, warned again and again that it is the nature and tendency of business people to want to put their thumb on the scale, and even better, to get the government to put the thumb on the scale for their benefit. And that’s what we’ve seen going on now in our society for some time.
Sums it up rather nicely doesn’t it. Powerful words
Or this
BILL MOYERS: But did you notice what happened when the Democrats briefly toyed with the idea of removing that tax break from the hedge fund and private equity managers Congress thought very briefly about removing it. And then the industry held a big party for– Harry Reid, Senate Democratic majority leader down in Las Vegas, and he came back from that big party and said, “I don’t think we’ll be taking that up anytime soon.”
DAVID CAY JOHNSTON: The problem of the political donor class’s outsized influence and its grip on Congress is bipartisan. There’s one party in Washington. It’s the party of money. It has different wings and factions. But Washington is the party of money. And the wealthiest people in America, the large corporations in America, are busy milking the government for everything they can get. And you are paying the price of their free lunch.
Yep - Money talks. Have a look at our presidential candidates - where is that money coming from?
Oh - don’t look at COMIDA the same way again either. It is yet one of many tools used to shift burdens from those who can afford it to those who can’t. What does COMIDA do again? It provides various exemptions from taxes. The very taxes that are the life blood of a government and provides its ability to function. Who makes up the difference? The ones not getting a COMIDA grant.




I saw this interview it was excellent. Johnson is an untapped and valuable resource for our area. We should get him to speak more or feature him as a commentator in our area. If not on WGOP how about on wxxi or wroc am
So let’s at least give credit for doing things that provide the benefit for which they are intended. From Wednesday’s D&C:
This is one of the COMIDA projects that sounds beneficial to the community: helping to keep a company in town that would otherwise move.
Hotels? Schools? Not likely to go anywhere. I’m not sure I see the economic benefit in those projects.
Right - credit due. I really don’t know anything about this company other than the press release. I thought they were a HVAC provider or something. So if they work they do is here then…
It is on my list to look at the company - anyone else feel free to pipe in.
There are 15 FTEs in company. Is credit due to keeping all these people here? No, they are adding 2 jobs. Taking ~400K in sales tax breaks creating 2 FTEs.
Do the math - 200K per job.
So here is their website.
In short, they are using RF (”Radio Frequency”: electromagnetic waves roughly like the ones that carry your radio or TV signal) to heat stuff; in their case, I think they’re doing welding inside a vacuum chamber. That “stuff” has to be conductive– it sounds like they are heating metals.
This *is* the kind of company we need to encourage to be and stay in our area. Good, technical, factory, and R&D jobs that support the sale of products, probably all over the world.
Again, credit where credit is due– this is a good act by COMIDA (I’ll point out that if you look for my other comments about COMIDA, they are pretty negative).
Also, I think your math is wrong. The article said:
Unless I’m reading it wrong, it amounts to giving the company about $32K to keep 15 jobs in the area.
Let’s guess these are good paying jobs. So a rough estimate might be that the $32K in sales tax waivers might generate:
- $750K - $1M in wages
- $40K - $80K in sales tax
- $10k - $20K in county property taxes
- $30K - $50K in other property (i.e., school) taxes
per year.
I’m not arguing with the potential value of COMDIA and yes encouragement of technical jobs is a good thing.
I’ll look further at the math as I may have read the original release too too fast.
The press release discusses the cost of the project. @ 396K. Typically that is the amount of benefit to the company. I missed the “up to ” part in the D&C.
But - one point does not a trend make and a stopped watch is correct twice a day and COMIDA may have done with this project but…
Yes, COMIDA is, in many ways, broken.
Yes, COMIDA wastes a lot of money that ought to be better spent.
If anything, this is the kind of case that shows what COMIDA could do if it were being run honestly and correctly.
We ought to tally up the money that COMIDA allocates– good and bad. My guess is that we’d find that the appropriate allocations are at best 25% and maybe only 10% of the total.
The Moyers interview was pretty good - one local tie-in that wasn’t mentioned in his discussion of Cabela’s was that Gander Mountain, a direct competitor, refuses to take COMIDA-type subsidies, on principle. Somehow, Gander Mtn still comes to town and makes money. He mentions it in his Fresh Air interview:
http://www.npr.org/templates/story/story.php?storyId=17808622
Thanks Rotten.
I’ll check it out.
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