Baxter incentive package could exceed $210 million

My AJC colleague Chris Quinn reports that the price of luring Baxter International to Georgia could be more than double last week’s estimate:

Incentives for luring a new pharmaceutical manufacturing plant and its 1,500 promised jobs to a location 40 miles east of Atlanta could exceed $210 million.

When Gov. Nathan Deal announced last week that Georgia had successfully landed the high-tech factory, the state Department of Economic Development estimated the state would give the company $80 million in incentives.

Alison Tyrer, the department’s spokeswoman, said she based the initial estimate on incentives that were specially crafted for Baxter. She did not include tax breaks and incentives every company can take advantage of, such as Baxter’s estimated $1.3 million in energy sales tax exemptions, or items such as $14 million training facility the state will build on Baxter’s site near Covington, which the state will own and potentially use for other training.

Tyrer also did not include local tax breaks and exemptions, which total more than $107 million.

Here’s the link to the laundry list of incentives.

- By Jim Galloway, Political Insider

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51 comments Add your comment

Rev

April 27th, 2012
1:54 pm

That’s some real fine gangsta’ govt.

Billingeorgia

April 27th, 2012
2:27 pm

Jim – Incentives are fine. Business don’t pay taxes anyway. The more expensive governments make it for business the more those costs are passed off to consumers. They should have just told them no taxes as long as you are in Georgia. In fact, they should eliminate all taxes on business in Georgia and watch the price of goods and services drop for consumers.

Dirty Dawg

April 27th, 2012
2:32 pm

Tell me that we’ve, at least, added ‘The Tennessee Strategy’ to our giveaways…that is to require them to moly hire Georgia residents. With Kia a substantial percent of employees are from Ala-damn-bama, which the last time I checked didn’t have to offer a damn thing.

GaNative

April 27th, 2012
2:33 pm

Billingeorgia–that’s the most naive statement I’ve ever heard. You think businesses wouldn’t just try to siphon off the most profits they can?

You’ve either never seen how businesses make decisions or you are a propaganda agent.

Cutty

April 27th, 2012
2:38 pm

Is the CEO taking a drug test for these welfare benefits?

yuzeyurbrane

April 27th, 2012
2:39 pm

Isn’t this a pre-bailout bailout? Govt. funding of private businesses. Socialism!!!

Rev

April 27th, 2012
2:45 pm

Baxter needs a enema.

Marlboro Man

April 27th, 2012
2:48 pm

Bout’ like building stadiums.

Billingeorgia

April 27th, 2012
2:49 pm

GANative – so what? The more profits they make the more capital they have to invest and create jobs. Savings that is wealth re invested is the only way jobs are created. If gub’mint takes that wealth, there is less to be re deployed for capital plant and equipment which means jobs.

Old School

April 27th, 2012
2:54 pm

So you call this socialism, and Obama had nothing to do with it. Interesting.BYW, how is this different from using hotel/motel tax to help the Falcons build a stadium?

Old School

April 27th, 2012
2:54 pm

Rhett Butler

April 27th, 2012
2:56 pm

Frankly, my dear, I don’t give a damn.

Looney Bin

April 27th, 2012
2:58 pm

Nope, why would a drug test be necessary? Those are only for the poor who receive public assistance, not the wealthy or corporations.

Kris T

April 27th, 2012
2:59 pm

You said it Cutty!

Now the second page.

This further demonstrates how corrupt the Governor and the republican legislators.
Georgia is last in public corruption laws

Cutty

April 27th, 2012
3:04 pm

Let’s not drug test the corporation pulling in $130M in tax breaks, let’s test the guy that lost his job after 20 years pulling in $320/week of UEI.

Some people see this as fine. I don’t.

Al

April 27th, 2012
3:11 pm

No surprise here, seems like a lot of people have bought this nonsense about about corporations creating jobs if they pay a very small percentage in taxes or not pay any taxes at all. I am still trying to understand why people vote against their interests.

jconservative

April 27th, 2012
3:12 pm

No company makes decisions based on either Federal or State income taxes. They have tax accounts and attorneys to take care of such mundane details.

The details outlined in the latest AJC report “Incentives for Baxter plant will be more than $200 million” is an update on what Jim is reporting in this column.

The argument that businesses will do this or that based on Income Taxes is a political argument that has nothing to do with business decisions.

kstreetconservative

April 27th, 2012
3:32 pm

Businesses don’t pay attention to taxes. This is why they join ALEC to influence state policy. They understand that if you buy a politician for a few million, the return on investment is often ten to a hundred times what they spent. Republics are great because there are so few people you need to bribe.

zeke

April 27th, 2012
3:34 pm

at 140k a job not much room for conservatives to talk about stimulus….hope someone does followup a few years from now to see whether it was worth it…..btw, are cost benefit analyses done, if so where ’s the paper

sean

April 27th, 2012
3:43 pm

I’d love to be a gov’t official when it comes to “selling” the benefits of the State of Georgia… Education? no. Culture? no. Parks and recreation? nope. $200 million? sold! Why can’t we improve upon these areas that would attract businesses without giving away the farm and perhaps we can all benefit from the enhancements? And let the company know that their $ is being used to improve upon quality of living so that their employees will appreciate the move too. Win/win/win?

kstreetconservative

April 27th, 2012
3:43 pm

In my cousin’s basement in a locked file cabinet in a disused lavatory with a sign on the door that says, ‘Beware of Leopard.’

DannyX

April 27th, 2012
3:51 pm

Wow, it cost a lot of money to bribe a company to come to Georgia.

You’re doing a heck of a job Georgia Republicans! $300 million for a new unneeded stadium, massive transportation tax hike initiative, rock bottom property values, high unemployment, bank failures galore, water problems, governor begged for half a billion for federal education program he said he was against, rock bottom education system, rotten to the core ethics, crops rotting in the fields, and incompetents placed in important positions.

Looks like we’re due for another pray for rain also!

dc

April 27th, 2012
3:52 pm

Let’s see…we are “giving up” taxes that the company would have NEVER PAID had they not relocated here. Once again I’m glad we have a state govt that uses actual common sense when agreeing to these deals….rather than the “sky is falling” BS that this supposed writer and some of his commenters/followers use when throwing darts. And in return, we get good paying jobs, income from actual exports, and the economy that will build up around this plant and the community in which the employees live.

A non-biased political reporter would compare it to the taxes being paid by the person who owned the raw land that this will be built on, and the economy being supported by all the folks who worked on that land (zero!!)

PMC

April 27th, 2012
3:53 pm

Incentives, to come here and set up shop = worth it.

If they weren’t here they wouldn’t EVER be paying Georgia any tax.

Not to mention 1500 workers with good jobs who are paying tax that perhaps werent before.

PMC

April 27th, 2012
3:54 pm

I’m not really sure why I’m supposed to be upset a company gets tax relief to relocate.

Why else would they move here?

MrLiberty

April 27th, 2012
3:54 pm

Just think of what 200 million dollars in incentives could do for businesses in this state that already employ hundreds of thousands of folks. This kind of corporatism crap has got to stop. Republicans and Democrats alike screw one business to favor another all because of some future revenue and untold promises. Businesses need to sink or swim on their own, they need to pay their own way, and the parasites in government need to stop treating both individuals and businesses as their unlimited cash cows. Government as always is the source of all of our problems.

PMC

April 27th, 2012
3:55 pm

The 200 million dollars do not exist. It’s not a tangible asset that can be traded around. It’s potential income. The state isn’t paying money to the company.

rally

April 27th, 2012
3:56 pm

“They wonder how they could live so large but leave so little for the rest of us” Mark my words when Baxter and Caterpillar move out in ten maybe five years it will be one big ruinous heap of smoldering non activity.

$300 Million to Bribe New Stadium….200 MIllion To bribe Baxter 200 Million to Bribe Caterpillar…..THIS IS A BAILOUT to these companies folks. Don’t buy into it and dont’ feed into there scheme. Its all part of the plan. I ain’t praying for no stinking rain…I am praying they all lose their jobs at the top so we can get this party over and back to a sane world.

zeke

April 27th, 2012
4:05 pm

pmc you embarrass yourself, read the article: http://www.ajc.com/business/incentives-for-baxter-plant-1427320.html

all 200m is not just tax credits….

Old timer

April 27th, 2012
4:09 pm

It will bring jobs and money to this state. This is the way this game is played. If we did not do it…another state would have. TN with NO state income tax has done real well in most cases through this recession.

Sean Smith

April 27th, 2012
4:14 pm

Looks like the republicans are picking winners and losers in business. Isn’t that what they tried to crucify Obama for???

Red

April 27th, 2012
4:17 pm

Funny seeing conservatives defending this nonsense. What happened to hands-off economics? Strange but I thought government manipulation of the markets was what many labeled as socialism. But when Republicans use the power of government to manipulate the free market, it is job creation. Fellow conservatives have fallen off the wagon.

red herring

April 27th, 2012
4:21 pm

it will probably not be in our lifetime when the state of georgia recovers that type of outlay of
money —- shame the existing businesses in georgia can’t get some relief. all we get are
more taxes in the form of different splosts plus increases in license fees, etc. sad when the taxpayers have to foot so much of the bill for a company like this. i can see some “free” taxes, etc
being offered but not to this extent. it would be nice to see a really good independent study done on how long it takes georgia and it’s taxpayers to make this money back.

dc

April 27th, 2012
4:23 pm

Scary how many folks don’t get that nothing in the way of taxes that exists today, has been given away. These companies were paying ZERO in taxes now….. Having seen these blog comments, its a lot clearer how politicians who promise things, that they really can’t deliver, continue to get voted into office.

GaBlue

April 27th, 2012
4:32 pm

Why not give ME a similar tax incentive, instead? I will use it to create jobs in my yard. It’s a MESS!

bc

April 27th, 2012
4:49 pm

Me am Publican caveman. Me think taxes are theft. We need to lure companies here, like me special skunk trap. Do the bidding of corprashuns and they will serve you.

[Prays to fire] Might corprashuns, here my plea! Come down big manna from heaven and help people with magic tax breaks! The corpashun will bring jobs to state! Rich people happy.

Who care about poor people.

Corprashuns smart to come to corrupt state! Me and me buddies like bribes paid to us by corprashuns! Come mighty corprashuns…come!

Cutty

April 27th, 2012
5:09 pm

The ‘free market’ at work!

zeke

April 27th, 2012
5:13 pm

dc it just was not tax credits….there will be cash outlays to bring them here; oh by the way, rep ryan on retreat from ayn rand…..he must be practicing for vp for romney, the flip flopper in chief.

Uncle Herman

April 27th, 2012
5:22 pm

Where can I get some of that with my little two man operation??
So what’s the running tab when you add caterpillar’s tax breaks to the equation??

You gotta love the people who run this state. You have an arrognant speaker of the house who says money from lobbiests have no effect on passing laws. THEY THINK WE ARE STUPID !!

td

April 27th, 2012
5:30 pm

You libs are never happy. You whine because the unemployment rate is 9% and now you whine because the government gives a corporation incentives to relocate to the state that will create 1,500 new jobs. They jobs will be high paying so therefore all those employees will be paying high tax amounts. There will need to be built restaurants, gas stations and more supplier companies to support this many workers and that will not only create more jobs but also bring in more tax revenue.

BTW: If you would do a little research you will see that states (red and blue) give incentives to almost all major corporations. Get a clue libs and quit whining so much.

Uncle Herman

April 27th, 2012
5:30 pm

Who’s paying the teachers that will do the training, Baxter or the State? Will they be subject to layoffs like the other state teachers? Awww…..so many questions.

td

April 27th, 2012
5:31 pm

Uncle Herman

April 27th, 2012
5:22 pm

Where can I get some of that with my little two man operation??

How many of your “little two man operations” will benefit from this move?

Uncle Herman

April 27th, 2012
5:37 pm

Once I review the construction documents, I’ll let you know.

CobbGOPer

April 27th, 2012
5:40 pm

I guess it would be fine if those jobs were actually going to Georgians, but I guarantee you at least 75-90% of their hires will be from out of state. And the Georgians they do hire will end up in the $30K and less jobs. Bank on it. Like another poster said earlier, most of the workers at the damn Kia plant are from Alabama! It doesn’t help the citizens when we give these enormous tax breaks away and the companies turn around and bring in non-locals with all the money they saved.

The only entity that benefits in this scenario, besides Baxter, is the state government.

Reality Check

April 27th, 2012
5:48 pm

Some people amaze me. So the state of Georgia offers a company $200m in future tax breaks to a company that will invest $1B back into our economy just over the next 5 years and some of you brilliant scholars think that’s a bad idea?

You either are beyond stupid, don’t understand economic development or work for the democratic party. Which, I guess is all the same.

Cynthia

April 27th, 2012
5:51 pm

MrLiberty is correct; giving tax breaks to a particular company is no different then paying them cash; it is an un-appropriated expenditure; others are correct that the questions is the ROI worth it versus giving the sames tax breaks to other businesses currently in GA and determineg whether that ROI is better; govt is choosing winners and losers; it also assumes any breaks end up back in the GA economy and not exported and not taxed to another state such as Delaware; and some of the incentives were cash layouts and expenses only for Baxter

Reality Check

April 27th, 2012
6:07 pm

Cynthia – that’s just not true. The tax incentives are based on employment numbers that baxter has to hit or they have to pay the state back. This is not a faith based tax incentive package. If Baxter does not meet it’s obligations the tax incentives go away.

zeke

April 27th, 2012
6:22 pm

td, i find it odd the repubs complained about barnes doing the same thing remember chrysler damler…guess what’s good for the goose is not good for the gander….if it is cost benefit justified good, but they ought to show economic impact/payback….not just their word

repeaten por favor, it just was not future tax breaks dunderheads, can’t you read

td

April 27th, 2012
7:07 pm

zeke

April 27th, 2012
6:22 pm

td, i find it odd the repubs complained about barnes doing the same thing remember chrysler damler

I do not remember that one. Can you link an article?

zeke

April 27th, 2012
7:39 pm

from this bill shipp column:

“The 2002 campaign was soon awash in accusations against Barnes. They included: rampant disregard of ethics laws; too little local control of schools; extravagant inducements to new industries and an obsession with campaign cash”

http://onlineathens.com/stories/073006/opinion_20060730059.shtml

the repubs complained about cost per job….perhaps as they should until perdue took office and sweetened the deal for a similar project in lagrange with kia. i also recall the grief the barnes administration took when it tried to make ga a leader in cancer treatment/research…..using tobacco fine money.