IDA reform may spell trouble for local firms
Written by Written by Rob Lillpopp on November 23, 2009 – 6:43 am

David Robinson writes in the Buffalo News - “Imagine this scenario: Chris Koch and other top executives at New Era Cap Co. are sitting down, trying to figure out which of its U. S. factories to keep open, either one in Derby or a sister plant in Alabama.

They paw through stacks of paperwork, comparing incentives, labor costs, taxes and utility rates. They weigh the pros and cons of each facility. They discuss all the intangibles they can think of.

“Wait,” someone says. “A big piece of the puzzle if we stay in Derby are the tax breaks we’d be getting, tax breaks through an industrial development agency. We can’t afford all the strings that are now attached to them. Alabama’s looking better and better.”

That conversation didn’t happen— but it could happen a lot if Gov. David A. Paterson succeeds in pushing through his frightening proposal for IDA reform that would require most companies receiving tax breaks through those agencies to pay workers—and even some vendors— higher wages.”

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