State and local officials in Iowa have been working hard to rationalize their handout of more than $208 million in tax benefits to Apple, one of the world’s richest companies, for a data facility that will host 50 permanent jobs.
The deal will help make Iowa an “innovation and technology” hub, Gov. Kim Reynolds gushed. It will ensure development of a big parcel of open land that otherwise would have remained fallow, local development officials said. It was a bargain, according to civic leaders in Waukee, the Iowa community that will host the data center — after all, Apple will be contributing up to $100 million to a local infrastructure fund, starting with money to build a youth sports center.
We were highly skeptical of this deal when it was announced Aug. 24. In the fullness of time, we’ve subjected it to closer scrutiny. And now it looks even worse.
More @ LA Times
Some are using the same argument against Foxconn in WI.
ReplyDeleteI disagree with them.
The tax break is the state allowing the company to keep profits it would normally be forced to pay in taxes. Iowa is receiving no tax revenue from them at this point in time; how will expanding this "zero collection" time period be a loss for the state? I'm getting nothing and will continue to get nothing for several more years.
Meanwhile, 50 people are working and paying taxes and purchasing goods and services in the area that might not have before. Trucks are delivering and picking up, meanwhile purchasing fuel and services. Other businesses may be more likely to build there because of Apple's presence.
The purpose of the state is to serve the citizens; not to look after there own profit.
The state is looking at an empty tax bucket that they see filling with imaginary cash. This deal will keep the bucket just the way it is.
I see no loss for the state.
Build it.
Thanks for the explanation. Makes sense.
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