Would you agree to a higher sales tax to keep a major employer from moving?
By ParaTed2k
@ParaTed2k (22940)
Sheboygan, Wisconsin
September 9, 2009 9:31am CST
More on the Mercury Marine drama in Fon du Lac, WI.
Now that the workers have voted to accept the pay and benefits concessions, Mercury Marine has agreed to consolidate in Fon du Lac instead of Stillwater Ok. However, the vote wasn't the only reason for staying.
City, county and state officials are now scrambling to make good on the incentives they offered the company, to woo them into staying. The incentives include bonuses to the company for every worker they keep, and every new job they create. The program will be financed through a countywide half percent increase in the sales tax.
Both cities and states were offering generous incentive packages, so it's not like they weren't going to get the red carpet treatment either way. Both states realize the impact the loss of over 1000 jobs would have on their economy. The people of both cities (whether employed by Mercury Marine or not) rely heavily on the financial realities of the factories being there.
Is it a good investment, or just another spending program that smells of corporate welfare?
It is a good investment. It's not like this is some fly by night outfit with an unknown record. The cost/benefit ananlysis is plain for all to see. Yes, it would mean an increase of sales tax, which translates to a decrease in the buying power of consumers; but not nearly as big a hit to the wallet that they face if the factory and corporate headquarters went south.
Would you be willing to accept a half percent increase in sales tax to keep a major employer in your area... even if you didn't work there?
1 person likes this
2 responses
@ParaTed2k (22940)
• Sheboygan, Wisconsin
9 Sep 09
Well, there are things I'd rather see happening in this situation. However, the city and county can't reduce anyone's state taxes.