[Clarification: According to Global Data Systems CEO Chuck Vincent, his company received state backing on 60 percent of a $2 million bank loan his company obtained for a project, which comes to $1.21 million; GDS did not receive a corporate tax credit as the New York Times database indicates. Also according to Vincent, Global Data Systems has since paid back the loan in full.]
An exhaustive New York Times examination of tax credits, rebates and other incentives state governments use to lure new businesses and to keep existing businesses from relocating elsewhere suggests that all incentives are not created equal and, further, that states often do not get a good return on their investment.
The story, accompanied by an interactive gallery, focuses on Texas, by far the most aggressive employer of corporate incentives at $19 billion per year. Indeed, private sector job growth in Texas has far outpaced the rest of the nation, but:
[T]he raw numbers mask a more complicated reality behind the flood of incentives, the examination shows, and raise questions about who benefits more, the businesses or the people of Texas.Compared to our neighbor to the west, Louisiana’s corporate incentives are miniscule — $1.79 billion per year — yet, relative to the rest of the nation and particularly to many other states with considerably larger populations, Louisiana’s largesse to corporations is considerable. The vast majority of incentives to companies offered by Louisiana are in the form of corporate income tax credits, rebates or reductions, followed by property tax abatements and personal income tax credits. The energy industry is the single largest beneficiary, followed by film and manufacturing.;
Along with the huge job growth, the state has the third-highest proportion of hourly jobs paying at or below minimum wage. And despite its low level of unemployment, Texas has the 11th-highest poverty rate among states.
“While economic development is the mantra of most officials, there’s a question of when does economic development end and corporate welfare begin,” said Dale Craymer, the president of the Texas Taxpayers and Research Association, a group supported by business that favors incentives programs.
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Both sets of figures — adjusted to cancel out seasonal changes — were released by the U.S. Labor Department.
Texas declined by five rigs, West Virginia dropped three and Louisiana was down two.
A federal appeals court in New Orleans has upheld a federal safety board's right to investigate the role of Transocean Deepwater Drilling Corp. in the 2010 Gulf of Mexico oil disaster.
A supporter of a lawsuit against the oil industry has been re-nominated to a seat on a south Louisiana flood control board despite opposition from Gov. Bobby Jindal.
The nominating committee for the Southeast Louisiana Flood Protection Authority-East was set Thursday to nominate applicants for two people on the board whose terms have expired.
Restaurant could see ‘a little facelift,’ Bobby Butcher tells Daily Report.
Attorney General Buddy Caldwell says he won't approve a Cameron Parish Police Jury resolution to hire outside attorneys for such a lawsuit until the resolution is amended. Caldwell's Sept. 15 letter says the resolution must make clear that those attorneys will represent the parish alone — not the state.
Michelle D. Lavergne, who worked for the Lafayette law office of L. Clayton Burgess for 13 years, faces up to 10 years in prison.
Sonnier, former media buyer and account exec at Sides, joins Acadian companies as marketing specialist; Maggard, who most recently worked for Potenza, joins Russo as director of media and PR.
New recreation/fitness trend taking over old Crazy Charlie’s on Ambassador Caffery Parkway.
Authorities said that a Chevron Corp. subsidiary was still releasing natural gas Sunday from a pipeline off the Louisiana coast where a Saturday incident killed a maintenance worker.
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Software development center represents third such project in Hub City this year.
Elizabeth Abdalla and Abform are poised for a new era of growth.
Lafayette’s most highly regarded attorneys were honored by their own at the Hall of Fame Banquet sponsored by the Lafayette Bar Association.
Collaboration and relationships give you the help you want — and the help you need.
A look at recent promotions, hirings and recognitions from Acadiana's business community.
Who doesn’t like grilled cheese?
There has been much progress in the 50 years since the Civil Rights Act was passed, but there is still work to be done.
Amid widespread criticism, two former U.S. senators say they are not lobbying Congress on behalf of a shady Russian bank, although a federal disclosure suggests otherwise.
Banks are the ones taking the financial hit for retail security breaches, and that just doesn’t seem fair.
It’s time to embrace a new regional model for economic development.
The state labor department figures released Friday show the initial claims decreased to 1,961 from the previous week's total of 2,237. For the comparable week a year earlier, there were 2,190 claims.
Hurry, rush to Jersey’s Daiquiris Sports Bar in Broussard for a cold one because at noon tomorrow its license is suspended for two months by the state!