It was announced Monday that NCR will move its headquarters to Georgia from Dayton, Ohio. The AJC also reveals that the state will spend $60 million dollars in tax credits to lure them here. In order for those tax credits to be triggered, NCR must have a payroll in excess of $150 million dollars.
State officials are downplaying the role of the $60 million tax incentives. Gov. Perdue spokesman Bert Brantley said it was a matter of treating NCR like a customer. When's the last time you felt treated like a customer by your state government.
NCR executives also downplayed the role tax breaks played in the decision. CEO Bill Nuti said the skilled labor force is the number one reason for the transition.
So if the state and the company both agree that the tax breaks weren't significant in the decision making process how did they arrive at $60 million? Ohio's best offer was $31.1 million. The income tax that employees will pay on $150 million in salaries will take nearly seven years to reach $60 million. If the 3,000 jobs are filled by Georgians that will help with the unemployment rate. More likely many of those jobs will be filled by people from outside Georgia which will not help the unemployment rate but should help a struggling housing market.
Luring businesses to your area has become a focal point of state and local politics, but $60 million seems a high price to pay. After all $60 million doesn't grow on trees.
No comments:
Post a Comment