Posted on 03/17/2017 8:47:01 PM PDT by 2ndDivisionVet
TRENTON -- A tech company is choosing to relocate to Trenton over Wilmington, Delaware, after securing more than $17 million in state tax credits.
The state Economic Development Authority on Thursday approved the Grow New Jersey tax credits for Maestro Technologies, a technology consulting and data management systems firm.
Now headquartered in Edison, Maestro has a small office in Watchung and several employees who work remotely or at client sites across the country.
CEO Kamal Bathla says the company wanted to centrally locate the staff into a new headquarters to better facilitate training, efficiency and product development.
Maestro was deciding between a 40,000-square-foot space at 1 West State St. in Trenton or a similarly sized space in Wilmington, Delaware, where it has an existing customer base and staff, but ultimately chose New Jersey because the state offered a better incentive package.
The credits will be doled out over 10 years -- $1,735,500 each year....
(Excerpt) Read more at nj.com ...
Be interested in who’s on the board, management, and to follow the money as this stinks.
$100k/job. Pays for itself over 10 years.
Theoretically any tax decrease that stimulates wealth creating capitalistic economic activity is appropriate policy.
Good thing it wasn’t Camden, or taxpayers would’ve had to finance ten times as much to make it attractive.
Sooner than that, because of the multiplier effect in the local economy. That’s why states offer incentives, they forgo a portion of tax revenue that they wouldn’t have had anyway if the company had located elsewhere and in return are the beneficiaries of a new inflow of cash that is invested and recirculated locally, plus ancillary taxes that are paid as a result of having those jobs.
On a macro scale, it’s why we need to buy American and hire American.
175 jobs assume $50K per job. = $8,750,000 in salaries.
NJ Income tax = 5.5% = $481K per year in income tax.
If the tax credit is for property tax on property that is yet to be developed, then it’s not like the state is losing anything, but more like they get an instant Income tax stream and a property tax stream in 10 years.
Probably makes sense.
Democrats, tech firms, Goldman Sachs, fraud, organized crime, money laundering, wealth creation for the chosen, financial corporate political backing....25 yrs of this.... Clinton’s started it.
See?
Yup!...and on a mini-micro scale....they need to incentivize “MY” business over yours...
> In the real world, the state granting one person or business benefits not available to all is immoral <
Bingo!
> I wonder how many of Maestro Technology’s local competitors that didn’t receive the state $$$ will be laying off employees and/or closing their doors? <
Bingo again. I’ve read that giving tax dollars to sports teams for new stadiums usually does NOT help the local economy. It just shifts around money that are already there. The same could well be true when it comes to industries.
I understand the concept, but the problem in a state like NJ (which already has sky-high property taxes) is that it simply puts the tax burden on the remaining suckers (which includes homeowners). East of Trenton, towns are girding for lawsuits as they decline permits for Jewish school dormitories; they don’t want large swaths of the townships to become tax-exempt properties. In the northeast of the state (Bergen County), churches are facing the same opposition - for the same reason.
This deal just makes the rest of us foot the tax-bills for this company, in a futile attempt to restore an area that is degenerating into another Camden (NJ’s Detroit).
SMH
Granting a “tax credit” is a concession that taxes for everyone are too high and are themselves a deterrent to economic activity, the creation of wealth and prosperity. When a company is given a “tax credit”, pressure is now put on the politicians to accommodate other entities and lower taxes for all. As long as there are Democrats who will accommodate the greedy, the dependent and those who prefer to be non productive, there will always be the opposite pressure to increase taxes and grow the state. Unfortunately the concept of productive capitalism and the generation of wealth is not appreciated by the majority of voters.
Just to be clear, the original statement holds. The growth of the states and the borrowing and taxes that are necessary to make it possible are a clear detriment to capitalistic productive economic activity and the wealth that it generates. The degree of social justice in any society correlates best with the production of real wealth, not the growth of the state. Its hard to find a tax cut that is inherently wrong in the long run. It is appropriate to to seek tax fairness and equity as a political goal.
NJ figuring it out. TN gave out almost 600mil in Tax breaks to land VW. Beat AL by 100. People paying tax on their Pringles adds up.
I agree with you. And if picking winners and losers, then bribing the winners actually worked Upstate NY wouldn’t be bleeding taxpayers, jobs, and House seats.
I see ads for New York trying to attract business.
What do they offer that isn’t already available in other areas?
Why NY and not SC?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.