With college football still a long couple of months away, thank goodness the sport of political tomfoolery knows no off-season. It’s a “sport” that engages us every day of the year and, in that regard, requires us to pay attention and buy a …
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With college football still a long couple of months away, thank goodness the sport of political tomfoolery knows no off-season. It’s a “sport” that engages us every day of the year and, in that regard, requires us to pay attention and buy a program or get hopelessly lost with what’s taking place on the field of play. “PTF” (political tomfoolery) even generates polls from time to time. I saw one the other day. Alabama was No. 7.
This particular poll reflected tax subsidies that result from “megadeals.” The new study that resulted in the No. 7 national ranking for the State of Alabama was generated by an organization called Good Jobs First. Our No. 7 ranking was based on 10 megadeals that state and local authorities have made with companies and corporations who have brought their plants and businesses to Alabama because “we” offered them tax subsidies.
Actually, in total megadeals we were tied with Kentucky and New Jersey, who also had 10 megadeals each. Michigan was No. 1 with 29 megadeals; New York had 23; Ohio and Texas had 12 megadeals apiece; and Louisiana and Tennessee were just ahead of Alabama with 11 each.
The ThyssenKrupp steel plant that came to Mobile County in 2007 is the Big Kahuna in Alabama where tax subsidy value is concerned according to Good Jobs First. TK’s tax subsidy value was — get this! — nearly $1.1 billion. Airbus, which is coming to Mobile to make aircraft, got a tax subsidy valued at over $158 million, which is about what Honda got in 1999 for its automobile assembly plant in Talladega. Hyundai got a tax subsidy package valued at over $234 million in 2002 for its automobile assembly plant in Montgomery, just a few million shy of the tax subsidy value Mercedes-Benz got for opening its plant in Tuscaloosa in 1993.
The kicker in all these tax breaks and subsidies, according to Good Jobs First, is that, based on reports from states where job projections were available from these megadeals, the average cost per job is $456,000. No, Joe Schmoe working on the assembly line or in the steel plant doesn’t make $456,000 a year doing his job; that $456,000 is what it cost the state and local government to create that job by getting a big company to build a plant in Alabama or Michigan or Kentucky by offering tax breaks. Truth is, Good Jobs First said some of these megadeals create little if any jobs in spite of the huge tax subsidies a state like Alabama offers an automotive or steel giant.
In Alabama I dare say most applaud Gov. Robert Bentley’s refusal last year to expand the state’s Medicaid program by turning down funds from the Affordable Care Act, known far and wide as Obamacare. Gov. Bentley said, instead of expanding Medicaid, he was going to create more jobs and have less people on Medicaid.
Governor, if it’s costing the state in the ballpark of $456,000 to create a job, that seems — what? — excessive. Maybe it’s not that much to create a megadeal job in Alabama but how would we know? Alabama is a state that doesn’t give regular reports on state and local tax breaks for big corporations. Wouldn’t you just know it! Whatever, Alabamians seem at ease in pouring money into what Good Jobs First calls “corporate welfare.” We’re not nearly so freehearted, apparently, when it comes to the poor or needy and down and out.
That’s why the sport of “PTF” requires attention to detail. If you don’t keep your eyes on the game, it’s easy to think you’re watching baseball or football when it’s really ice hockey and that ice is oh so slippery.
Bob Morgan is a retired, award-winning journalist and an author.