Roch101 on Guilford County Economic Incentives

Forget the unprincipled construction industry patronage, the fair and smart way for Guilford County to spend $1.3 million

 

…The proposal by Guilford County Commissioners Steve Arnold and Skip Alston to provide monetary "grants" equal to three years of property taxes to property owners who build, renovate or remodel property is a nice little gift to a narrow group of industries, but it is laughable to call it an economic incentive. It is a development incentive.

 

…A real plan would have as its measure the creation of good paying jobs. This plan isn't it. It will pass because it will line the pockets of enough people to make it popular…

 

…If you are opposed to incentives in general, this plan is a bad idea because its largess could otherwise be spread to all businesses in the form of an across the board tax reduction. If you find incentives acceptable, the plan is unimaginative because it encourages only construction. It does not extend grants for the purchase of a new x-ray machine, computer or other business expanding equipment or even for what should be the real bottom line, the addition of a new employee…

 

…would not the proposed first year $1.3 million cost of the plan be better used if it provided a $1,000 grant for every new job created paying above $11.00/hour?

 

Would not that truly be an incentive for all businesses? Would not that be far fairer and more equitable than the current proposal? Would not that be the more direct, purposeful and justifiable reason for incentives, the creation of jobs?

 

Which is the better incentive?

 

- Giving a business a $1,000 grant each year for three years for adding $13,000 in value to a property through construction of or renovation to a building.

 

- Giving a business a $1,000 grant each year for three years for creating a new good paying job.

 

Roch101, August 19, 2009