Comments on: Corporate Welfare Helped Pharma, But Not NJ

By: HorusCat

HorusCat — Thu, 03 Apr 2008 17:48:43 +0000

Ed,
Thanks for the insight. I hear national political figures speak of corporate welfare as any tax break that benefits corporations….in the same context as raising taxes on corporations.

I agree with your point–and think I was making the same point, when I say that municipalities aren’t even sure they are getting anything of value when they lure companies with site development, tax abatements, etc. They are so desperate, though, to be “bringing jobs” to the area (and the public is not usually really well informed about the incentives used to bring the companies in), that they offer millions in incentives.

By: AV Block

AV Block — Thu, 03 Apr 2008 16:49:40 +0000

that’s interesting context… thanks.

By: Ed Silverman

Ed Silverman — Thu, 03 Apr 2008 16:05:03 +0000

Hi Folks,

Corporate welfare, as I understood the term while briefly covering economic development at New York Newsday when Rudy Giuliani was the mayor, is or was a somewhat sarcastic reference to subsidies given companies, which may not really need the funds. And it was understood that such subsidies would do nothing to allay higher prices or costs that would later be borne by customers or taxpayers, depending on the trail one follows.

Regards
ed

By: AV Block

AV Block — Thu, 03 Apr 2008 15:52:31 +0000

thanks, horuscat.

you’re completely right about your point on corporate welfare, imho…

By: HorusCat

HorusCat — Thu, 03 Apr 2008 15:36:06 +0000

Good points, AV. My husband is in the “business development” arena for municipalities. It is not only pharma that has to be lured with tax breaks, site development and other goodies. There is on-going argument about whether a municipality ever earns back the tax dollars lost to such incentives, and businesses break the deals all the time.

One thing we have to remember is this: there is really no such thing as “corporate welfare.” Corporations pass on all their costs to the consumer so that they can still make a profit. If the government increases taxes on any type of business, most of that increase will eventually wind up in increased cost of product or lay-offs to curb costs that way.

By: AV Block

AV Block — Thu, 03 Apr 2008 14:34:17 +0000

there are a lot of smart scientists in china, india, and eastern europe. that’s where big pharma savings will go. additionally, i guess if a worker is taxed very high in a state like new jersey, a worker demands relatively high wages that even big pharma cannot afford. even superb journalists from new jersey have to be creative in order to afford high tax, high cost new jersey.