Forum Discussion
spoon059
Sep 19, 2013Explorer II
Charlie D. wrote:
In addition, the companies in red got tens of millions in aid from the states for setting up new factories. I don't see any difference in them than I do GM or Chrysler. It all comes from the taxpayers.
The difference is that they received tax credits that REDUCE the amount of taxes paid, but they still pay a LOT in taxes. From real estate tax to payroll taxes to sales tax to import taxes to export taxes. They generate a lot of jobs and pay a lot of employees who pay income taxes and buy things and pay sales taxes.
The states figure they would rather give a tax credit to woo the companies in and then collect all those taxes on the back end, rather than let some other city or state benefit from the taxes.
Fear not, in the situation that you are talking about, the government still gets their piece of the pie. Find a factory that you thing is getting "millions in aid" and then find out how much tax money that factory generates for the governing authority that granted that tax credit. Once you see the numbers, you'll realize that it isn't the same as handing out $25 BILLION to a single company.
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