Tenn. lawmakers: VW incentives threatened by UAW

AP via Kingsport TN Times News ^ | February 10, 2014 | ERIK SCHELZIG

[don-o]

NASHVILLE, Tenn. (AP) — Republican lawmakers in Tennessee are threatening that the state could turn off the spigot of incentives for Volkswagen if workers at the German automaker's plant decide this week to approve union representation.

[Responsibility2nd]

Tax breaks should be for all or not given.

________________________________________

Some may argue that no one should be given a tax break. I disagree. I think its wise and prudent to entice profitable companies like VW to build billion dollar facilities in your state which employs thousands and generates billions of wages and other benefits.

So yeah. Let them have a free ride on corporate tax rates and real estate taxes for awhile.

[Oliviaforever]

VW should not get Welfare payments from the tax payer, union or no union.

[Dr. Sivana]

Leave out the snarky remarks and smoldery bedroom politics and you’d have the full 43 minutes for diagnosis, up from probably 20.

My understanding is that the tax breaks (which I am not a fan of either, unless they are provided to all manufacturers) would likely be for the economic advantages that come from having a large employer in the area, including jobs, collateral business activity in support of the large employer, extra taxes (even after the tax breaks).

The only reason against might be that it will enrich the Republicans' political enemies.

I believe that Tennessee is a right to work state, so those who don't want in don't have to be in. If the Republican majority will pull goodies because a business doesn't do things its way, that seems a bit like the flip-side of soft fascism. Caesar is very hungry.

[SgtHooper]

Because it is the norm for doing business these days, as evidenced by the Odumbo Administration. Do not bring rule-of-law into a discussion anymore. :-)

[E. Pluribus Unum]

Tax “incentives” pick winners and losers. It’s unequal protection under the law. It’s the same thing as giving “unearned income tax credits” to Democrat voters, which is the same thing as buying votes with our money.

[DoodleDawg]

In other words if the union gets in the state will be subsidizing the wages, in effect helping the people that get the subsidy make more money than the average taxpayer in TN.

Won't those higher wages mean more for the state in the form of higher income tax receipts? Isn't that a good thing?

[tanknetter]

I think that’s the crux of the matter. The state tax breaks are helping drive VW’s net revenue. The union wants it’s cut ( which will be paid out of mber dues)

Therefore TN is functionally subsidizing the presence of the union.

The state has much less of an interest in doing that than it does in subsidizing VW’s presence. Not saying that they should be, but it’s a matter of degree...

[SgtHooper]

VW should allow this to happen, and after the workers make the first union payment, close the plant. Optimize the pain.

[Hot Tabasco]

Small amount of reading I've done indicates that VW actually wants the UAW to come in.

Keep in mind that VW is GERMAN owned and in Germany their labor force is completely socialized as is their healthcare system.

They're receptive to union organization only because they haven't had to deal with them here in the U.S. up unti now. What these krauts haven't realized is that the U.S. UAW, once they get their foothold, will ultimately destroy their competitiveness against the other non-union auto makers.......

I suspect that their long term plan anticipates the complete take over of health care by the govt., thus alleviating them of those overhead costs...and possibly the the pension system too.........

But with that being said, if Obamacare is able to be tossed out, these Germans will be stuck with healthcare costs that they didn't anticipate.........

My company here in Detroit was German owned and ultimately they sold us off after we had been in business for over 85 years. The stamping plant which once employed over 2,000 people when I was hired in 1972 is now vacant and stripped down.......

[Alter Kaker]

We have seen what the unions did to International Harvester, to GM and to Chrysler. Ok, now we want to kill another American Factory.

Volkswagen is almost all unionized and they had a $33 billion PROFIT (not revenues, PROFIT) last year. I'm no fan of unions, but they seem to know what they're doing. Why would you have a bunch of two-bit state legislators telling them how to run their own private business?

[Dr. Sivana]

The state forgoes taxes so that a company will locate there. The state did not forgo taxes so that union members can take advantage of the taxpayers for higher wages.

If VW wants to negotiate with the Unions over wages and bennies, I don't see how that means the Union empoyees make more than they are worth. If VW is paying them what they are worth already, the Unionistas will likely take home less pay, as they have to pay the Union Dues.

Now, it is possible that the UAW is making a special offer to stay relevant, not getting involved in regulations, firings, etc. And VW thought that was a good long-term bet to shut these guys up once and for all, or even a nefarious plan to keep wages low, like in the old Communist unions, where the Unions lay low for a piece of the action.

I am a little surprised the freepers talk about tax breaks as "giving the company money". It's the company's money until they spend it, lose it, have it stolen from them or have it taxed from them. My main beef is that the other companies don't get the same break, but that's not what we are discussing.

[Dr. Sivana]

Tax “incentives” pick winners and losers. It’s unequal protection under the law.

Agree 100% But then they shouldn't have them regardless of union status.

[cripplecreek]

Exactly. Its the same argument I made when the “incentives” to filmmakers started here in Michigan. Those so called incentives would be great if they were given across the board. Instead they were given to democrat friendly industry.

While there is no little guy trying to compete with VW, more often than not incentives prop up businesses that can’t survive without them and create unfair competition for businesses that don’t get the same break.

In my opinion, economic development scams should be outlawed nationwide.

[Vigilanteman]

More than likely, the state offered the incentives based on financial return projections. Said projections would have to be considerably lowered in the event of a unionized plant.

No, I'm not fond of government playing venture capitalists on behalf of the taxpayers, but if they do, they have the right to protect said investments.

[Gay State Conservative]

The UAW’s Communist leadership is the reason...the *only* reason...why I haven’t considered buying a car sold by the Big Three since 1990.VW has to be out of its ever loving *mind* to *want* the UAW in its plants.If they want it’s certainly OK to give their workers the same pay and benefits.In fact,that might even be a good idea.But the possibility of strikes and the outrageous demands that the UAW makes? Gimme a break! If the UAW manages to get into VW I’ll never consider buying their cars again.

[DoodleDawg]

They're receptive to union organization only because they haven't had to deal with them here in the U.S. up unti now. What these krauts haven't realized is that the U.S. UAW, once they get their foothold, will ultimately destroy their competitiveness against the other non-union auto makers.......

VW had a unionized plant in Pennsylvania from 1978 to 1988. I think they know what they're getting in to.

[tcrlaf]

VW thinks they can get a “German-Style” union to work in America, but anyone at Daimler can tell them that the UAW has no interest in being a partner.

The leadership makes too much money bilking the membership.

[DoodleDawg]

More than likely, the state offered the incentives based on financial return projections.

Highly unlikely. States typically offer these incentives because the company they are wooing says they're going to bring x number of jobs to the area. So far VW is living up to that end of the bargain.

Said projections would have to be considerably lowered in the event of a unionized plant.

How so?

No, I'm not fond of government playing venture capitalists on behalf of the taxpayers, but if they do, they have the right to protect said investments.

And if VW closed its doors and left tomorrow, as unlikely as that may be, then what could Tennessee do about it?

[detective]

There is nothing private about the UAW. They use political pressure on employers to get what they want and they push members to vote for their candidates and to volunteer their time working on their campaigns. They use union dues which are extracted by force to finance their political candidates who they control.

Union representatives also threaten people who try to stop employee theft etc. Watch the movie Goodfelles about how unions would “lean on” people who interfered with hijacking operations and other criminal activities.

[tcrlaf]

But.. But...
To Paraphrase Rep Ellison, if the plant left Tennessee, these thousands could be freed from the burden of work!!!