|
|
| Post Number: 1
|
Madd Max 
Group: Members
Posts: 1345
Joined: Aug. 2003
|
 |
Posted on: Dec. 20 2003,1:32 pm |
|
   |
This Alamco thing where a new business is going right next to them isn’t really going to do Albert Lea any good. Economically speaking they will bring two or three jobs to town and we will give them tax free status for 10 to 12 years. I feel to get these tax free zones there should be a clause that a company should have to hire at least 50 employees otherwise they don’t get a zone. I want to see [b]Real Economic Development [/u]to these areas. What do you all think? 
--------------
Heck, if crazy were a pre-existing condition, the GOP wouldn't be able to get insurance. James Carville
|
 |
|
|
| Post Number: 2
|
MADDOG
Group: Moderator
Posts: 7821
Joined: Aug. 2003
|
|
Posted on: Dec. 20 2003,2:13 pm |
|
 |
At this point Maxx, whether it's 5 or 50, as long as it's good paying wages.
But I think the big issue is the paradox of it.
Some say the tax free zones will cost state and local government revenue. State officials estimate that JOBZ will cost the state over $9 million in lost revenue per year. This could be much higher, though. Think about it, the more companies that move and take advantage of the zone, should they move out of existing tax revenue areas in the state, the more lost state tax revenue. And who's to say that within a year, Iowa, South Dakota, and Wisconsin don't develop a similar plan.
And also we could have business against business when a new company moves into a zone and competes with a similar business already there and not benefitting from the tax shelter.
As ther Minneapolis Director of the Federal Reserve stated: | Quote | Art Rolnick, has been the most public critic of the JOBZ program.
"Nobody wins in these subsidy wars. It's only the private companies that win. Jobs are created by the market, not government," says Rolnick.
|
--------------
Actually my wife is especially happy when my google check arrives each month. Thanks to douchbags like you, I get paid just for getting you worked up. -Liberal
|
|
|
|
| Post Number: 3
|
jimhanson
Group: Moderator
Posts: 8491
Joined: Aug. 2003
|
|
Posted on: Dec. 20 2003,3:03 pm |
|
|
Good topic--good discussion. From MADDOG| Quote | Jobs are created by the market, not government," says Rolnick.
|
Absolutely true, as far as it goes. What is left unsaid is that government can and does create a chilling effect on business--as exemplified by Minnesota taxes and workers compensation, compared to any of our neighboring states.
Max also has a good point--companies often take advantage of an enterprise zone for the time the benefits are available--then leave.
All most Minnesota outstate Counties would ask for or need is that they be allowed to compete on an equal footing with neighboring states--not a "free ride" or complete elimination of the tax. The BEST solution, of course, is for legislators in St. Paul to look at what the competition is doing in the surrounding states, and set tax policy accordingly. Then, we wouldn't have cities fighting each other for these pitifully small JOBZ zones.
--------------
"If you want to anger a Conservative, tell him a lie. If you want to anger a LIBERAL, tell him the TRUTH!"
|
|
|
|
| Post Number: 4
|
MADDOG
Group: Moderator
Posts: 7821
Joined: Aug. 2003
|
|
Posted on: Dec. 20 2003,3:22 pm |
|
|
Jim's right, what we need is the ability to compete on equal basis, not subsidy.
Maxx, one thing I forgot to mention on the Fit Rite(?) company that's building next to ALAMCO, they were coming anyway, we just greased their palms for them and gave them a little extra incentive to come a little quicker. How nice of us to do this for them, huh?
--------------
Actually my wife is especially happy when my google check arrives each month. Thanks to douchbags like you, I get paid just for getting you worked up. -Liberal
|
|
|
|
| Post Number: 5
|
Madd Max
Group: Members
Posts: 1345
Joined: Aug. 2003
|
|
Posted on: Dec. 20 2003,11:41 pm |
|
|
Ya we have this Minnesota nice thing ya know. So how much are we going to loose in corporate taxes over the ten to twelve years that Fit rite will have this tax free zone. The income tax the two or three employees that Fit rite hires from the area won’t add up to much. so how many million will the state give up for these few jobs.
--------------
Heck, if crazy were a pre-existing condition, the GOP wouldn't be able to get insurance. James Carville
|
|
|
|
| Post Number: 6
|
watcher
Unregistered
|
|
Posted on: Dec. 22 2003,12:57 pm |
|
|
Just wondering as I read this..Doesn't there have to be a employment quota to qualify for the JOB Zone?
|
|
|
|
| Post Number: 7
|
Fairmont vs. Worthin
Unregistered
|
|
Posted on: Dec. 22 2003,1:59 pm |
|
|
all jobz is going to do is force the competeion to varous areas within jobz zones. now businesses will pit New Ulm vs. Albert Lea or
|
|
|
|
| Post Number: 8
|
Sorry
Unregistered
|
|
Posted on: Dec. 22 2003,2:00 pm |
|
|
Fairmont vs. Worthington
|
|
|
|
| Post Number: 9
|
Madd Max
Group: Members
Posts: 1345
Joined: Aug. 2003
|
|
Posted on: Dec. 23 2003,10:01 am |
|
|
Watcher
Doesn't there have to be a employment quota to qualify for the JOB Zone?
That would be a good question for Rep. Dorman. I don’t believe so. The new company going next to Alamco is receiving a tax free zone? They have already stated that they will only be hiring ten or eleven people all together, But only two or three will be from the Albert Lea area. 
--------------
Heck, if crazy were a pre-existing condition, the GOP wouldn't be able to get insurance. James Carville
|
|
|
|
| Post Number: 10
|
MADDOG
Group: Moderator
Posts: 7821
Joined: Aug. 2003
|
|
Posted on: Dec. 23 2003,10:36 am |
|
|
Max, for the amount of time I don't have to research this, I've found this much: | Quote | Qualified business means a trade or business operating within a job opportunity building zone. If a business relocates operations into a zone, to be a qualified business it must both:
· Meet an expansion test by either:
§ Increasing employment by 20% in its first full year of zone operations and maintaining that level of employment during the duration of the zone; or
§ Making a capital investment in the zone equal to 10% of its gross revenues in the prior year from the portion of the business it relocated to the zone; and
· Agree in writing to repay the tax benefits, if it does not meet the expansion test.
} Relocates means moving a Minnesota business operation from outside a zone into a zone or by locating an operation in a zone that supplants employment at an existing Minnesota business operation outside the zone. It does not include an expansion that does not replace or supplant another Minnesota operation.
|
To view the entire House Bill Summary JOBZ
--------------
Actually my wife is especially happy when my google check arrives each month. Thanks to douchbags like you, I get paid just for getting you worked up. -Liberal
|
|
|
|
|
|
|
