More Questions Raised About Google's Sweetheart Deal In North Carolina
from the sweeter-and-sweeter dept
Recently, we pointed to a story suggesting that Google, like Microsoft in its early days, still has a thing or two to learn about dealing with politicians. Basically, the company used some pretty heavy-handed tactics when lobbying the state of North Carolina for tax incentives to build a new data center there. The company almost pulled out of the project after language in the initial bill clarified that the bill was intended to help Google. Now it's been revealed that the economy study performed to justify the bill was never completed. The critical question, which the study never addressed, is whether it makes sense for the state to offer three decades worth of tax breaks, with an estimated value of $250 million. All that they determined was that a $5 million job creation grant could lead to $45 million in state revenue. The real issue is not the tax breaks themselves; states frequently give companies incentives to locate there. But if Google is trying to ram through beneficial legislation in a manner that will anger many politicians and damage its "do no evil" reputation, the move could come back to haunt it.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in thread ]
Why NC?
[ link to this | view in thread ]
Just what you thought...
Just human nature.
The big problem now is that oother companies are now asking for similar benefits, and some political tyoes are hiding in their basements or running for cover.
Let's sell tickets and watch this unfold. Anyone for the movie rights ;-)
[ link to this | view in thread ]
Wrong Wrong Wrong
Now my question is: is GOOGLE not going against the society by not giving society (through government) its due credit. Isnt it wrong that only a few handful people earn too much at the cost ( and maybe exploitation of others ).
Another point if things like these continues then the other firms who pay usual taxes will become less competitive in the long run. Is this again not wrong??
If u see the recent controversies in india relating special economic zones than u might get an idea of what the future might hold if policies like this continue!
[ link to this | view in thread ]
Re: Why NC?
Of course with the excellent state of IT education provided by Lenoir-Rhyne college, it is easy to see why Google chose this location over those available in the RTP. UNC, Duke; what are they?
[ link to this | view in thread ]
Re: Re: Why NC?
[ link to this | view in thread ]
The politicians are idiots in NC!
[ link to this | view in thread ]
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
Re: Re: by Duphus
I've heard other people on this site accuse you of being an idiot. Now I know they were right.
You obviously know little about NC and I'm sure our state is better off without you.
[ link to this | view in thread ]
Re: Re: Re: by Duphus
[ link to this | view in thread ]
I still dont understatnd
In the big picture, the money the state will make, from home sales taxes, car taxes, gas taxes, State income taxes, on all of the 300 to 600 or so new jobs this new site will make, plus all the businesses that will sell goods and services to those people, not to mention Google as a business. Sure, Google might be getting some long term tax breaks, but the local governments will still make out. If you have ever had to work with/for any government agency as a business, they never give anything for Free, it always a HUGE red tape nightmare. All of this media hype over this, just seems like more BASH Google cause they are a big target and are on top of their game, so lets knock them down.
Whatever...
[ link to this | view in thread ]
Re: Re: Re: Why NC?
[ link to this | view in thread ]
Re: Re: Re: Why NC?
There are red-neck homophobes everywhere, not just here.
Idiot...
[ link to this | view in thread ]
Google traffic
[ link to this | view in thread ]
Re: Re: Re: Re: Why NC?
Look whos talking?
Idiot
[ link to this | view in thread ]
It is frustrating to realize that only little people pay taxes (yeah, big surprise), and big boys get away with passing special laws that exempt them from taxes for 30 years. Isn't there a constitutional provision against passing laws to benefit just one person (or legal entity?) - or is that provision just to prevent *punishment* of just one person or entity?
[ link to this | view in thread ]
Re: Stymie
Also, like another commenter said, the Google datacenter is going nowhere near RTP but way out in the Western part of this state where most people are farmers or have other low-wage jobs. The state of NC gave insane tax breaks to huge companies in the 70s to attract them to the RTP area and now it's booming, so I see no problem with our state government doing the same for Google to get them here.
[ link to this | view in thread ]
Re: Re:
[ link to this | view in thread ]
Re: Re: Re: Re: Why NC?
[ link to this | view in thread ]
Re: Re: Re:
Yup, people in Silicon Valley liked to brag about similar rates for their rent too -- they didn't like to tell you about how many roommates they had, whether the lease was legal, or how small their room was.
I have no clue what you are talking about with regards to "scowling Vietnamese immigrants" since the majority of immigrants in this area come from highly-regarded universities in India and have high-paying tech jobs in the Park.
Yup, the whites in NC live in their bubble and say that foreigners are "extremely rare" in NC. Just as white folk in Silicon Valley lived in their segregated communities 2 hours from the Valley, and were damn proud of it.
[ link to this | view in thread ]
Re: Wrong Wrong Wrong
[ link to this | view in thread ]
It is a Datacenter
[ link to this | view in thread ]
Re: Just what you thought...
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]