Tag Archives: corporate

1/3 Oklahoma’s Budget Dedicated to Corporate Incentive Payouts

The New Economy-How do we like it so far?

The New Economy-How do we like it so far?

Kaye Beach

Dec. 3, 2012

Welcome to the New Economy!

The New York Times spent 10 months investigating business incentives awarded by hundreds of cities, counties and states. Since there is no nationwide accounting of these incentives, The Times put together a database and found that local governments give up:

  • $80.3 billion in incentives each year
  • 1,874 No. of program

Check out the interactive map that shows spending incentive spending state by state here

Oklahoma

Oklahoma spends at least $2.19 billion per year on incentive programs, according to the most recent data available. That is roughly:

  • $584 per capita
  • 37¢ per dollar of state budget

Read more about Oklahoma

Here is the NYT accompanying news report;

Tax Incentives to Companies Bleeding Towns Dry, With Few Results

Sunday, 02 December 2012 09:51 By Louise Story, The New York Times News Service | Report

In the end, the money that towns across America gave General Motors did not matter.

When the automaker released a list of factories it was closing during bankruptcy three years ago, communities that had considered themselves G.M.’s business partners were among the targets.

For years, mayors and governors anxious about local jobs had agreed to G.M.’s demands for cash rewards, free buildings, worker training and lucrative tax breaks. As late as 2007, the company was telling local officials that these sorts of incentives would “further G.M.’s strong relationship” with them and be a “win/win situation,” according to town council notes from one Michigan community.

Yet at least 50 properties on the 2009 liquidation list were in towns and states that had awarded incentives, adding up to billions in taxpayer dollars, according to data compiled by The New York Times.

Some officials, desperate to keep G.M., offered more. Ohio was proposing a $56 million deal to save its Moraine plant, and Wisconsin, fighting for its Janesville factory, offered $153 million.

But their overtures were to no avail. G.M. walked away and, thanks to a federal bailout, is once again profitable. The towns have not been so fortunate, having spent scarce funds in exchange for thousands of jobs that no longer exist.

One township, Ypsilanti, Mich., is suing over the automaker’s departure. “You can’t just make these promises and throw them around like they’re spare change in the drawer,” said Doug Winters, the township’s attorney.

Yet across the country, companies have been doing just that. And the giveaways are adding up to a gigantic bill for taxpayers.

A Times investigation has examined and tallied thousands of local incentives granted nationwide and has found that states, counties and cities are giving up more than $80 billion each year to companies. The beneficiaries come from virtually every corner of the corporate world, encompassing oil and coal conglomerates, technology and entertainment companies, banks and big-box retail chains.

The cost of the awards is certainly far higher. A full accounting, The Times discovered, is not possible because the incentives are granted by thousands of government agencies and officials, and many do not know the value of all their awards. Nor do they know if the money was worth it because they rarely track how many jobs are created. Even where officials do track incentives, they acknowledge that it is impossible to know whether the jobs would have been created without the aid.

“How can you even talk about rationalizing what you’re doing when you don’t even know what you’re doing?” said Timothy J. Bartik, a senior economist at the W.E. Upjohn Institute for Employment Research in Kalamazoo, Mich.

The Times analyzed more than 150,000 awards and created a searchable database of incentive spending. The survey was supplemented by interviews with more than 100 officials in government and business organizations as well as corporate executives and consultants.

A portrait arises of mayors and governors who are desperate to create jobs, outmatched by multinational corporations and short on tools to fact-check what companies tell them. Many of the officials said they feared that companies would move jobs overseas if they did not get subsidies in the United States.

Over the years, corporations have increasingly exploited that fear, creating a high-stakes bazaar where they pit local officials against one another to get the most lucrative packages. States compete with other states, cities compete with surrounding suburbs, and even small towns have entered the race with the goal of defeating their neighbors.

While some jobs have certainly migrated overseas, many companies receiving incentives were not considering leaving the country, according to interviews and incentive data.

Read more

“Claims that the technology will be used to track people are inaccurate” Paul Sund

May 11, 2010 the Oklahoma House which previously passed HB 2569 by a wide margin (76-13 with 12 excused) failed to get enough votes to override the Governor’s Veto of the Radio Frequency ID bill.

Henry spokesman Paul Sund thanked the lawmakers for reviewing the legislation and sustaining the governor’s veto.

“It made no sense to prospectively ban technology that can provide future benefits,” Sund said. “Claims that the technology will be used to track people are inaccurate.”

Read more about the failed veto override vote on May 11, 2010 in this Tulsa World article

SIA CEO Richard Chace says in his letter to Gov. Henry;

“Unfortunately, this legislation reflects common misperceptions about RFID applications that are based upon twisted facts and emotions generated by ill-informed “privacy rights” advocates.”

And

“Governor, please be assured that safeguarding the privacy of personal information collected through government-issued identification documents is of paramount concern to our membership”. Read the letter

More; Oklahoma Law Makers Led Astry...

How long till the lies our trusted official told us becomes painfully apparent to Oklahomans?

The clock is ticking as the use of RFID for TRACKING purposes accelerate. How long until the people in this state are mandated to carry the devious devices?  Anyone want to place their bets?

Japanese company NEC wowed technophiles and horrified privacy advocates earlier this year with electronic billboards that use facial recognition technology to identify the age and gender of passers-by, tailoring the ads they display to fit the demographic. Now IBM researchers in the UK are taking that notion even further, taking advantage of new technologies to delve deeper into the personal data of people on the street, tailoring advertisements that can even call the subject by name.

The billboards they are developing rely on the RFID chips that are increasingly being built into credit cards and cell phones as a means of storing data that is accessible by contact-free sensors (like the “touch pay” feature on some credit and debit cards that doesn’t require the user to swipe). A sensor on the billboard picks up on that RFID signal as the cardholder passes by, tapping information like name, age, gender, shopping habits, and personal preferences.

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“Fascism should more appropriately be called Corporatism because it is a merger of State and corporate power.”

Benito Mussolini