Google likes to utter the motto of “do no wicked.” Of work, most people don’t think this anymore given some of its recent predatory activity & collusion with the Chinese government on censorship. Regardless, plenty of people in North Carolina are also beginning to wonder how Google steamrolled their government to the tune of over $160,000,000!
Less than ten years elderly, Google has burst onto the scene like few companies nowadays. Now it is learning to throw around its weight when it comes to tax issues.
As Google grows, it needs more facilities. More importantly, it needs some place to put them. Unlike other businesses, Google now has the clout to “massage” nice deals on potential locations. The massaging has everything to do with tax relief.
When any large corporation starts thinking about a brand spanking new facility, the states “come a runnin'” Why? Well, the states are looking for job creation. In the event that they can receive a huge company to build a facility, jobs will be created. More jobs mean happy constituents. Happy constituents tend to re-elect politicians.
In the case of Google, North Carolina competed with other states to get the new facility. After all, a $600 million dollar facility is going to require plenty of employees, right? Well, Google apparently was reluctant to commit to any job creation numbers. North Carolina apparently decided it was worth the risk & took the plunge. It now appears the new facility will only lead to the creation of a maximum of 200 jobs. Oops.
So, what do states must offer the huge corporations? Lovely views? Great weather? Nope. Taxes relief! The states fundamentally tell the corporation that they will waive definite taxes as long as the corporation agrees to build their facility within the state. It may sound sleazy, but it is an age elderly situation.
So, what did North Carolina give to Google to get the facility? The kitchen sink! The state has agreed to some large tax benefits. It’s waived all personal property taxes Google would have had to pay for 30 years. It also waived 80 percent of the actual estate taxes the company would must pay for 30 years. Now that is tax relief!
Ought to Google be blamed or condemned for walking over the North Carolina politicians? No. Business is business. The next time you listen to the “do no evil” slogan, know it comes with a wink!