June 2, 2009

NCR Moving Out (See Update)

Filed under: Activism,Economy,Taxes & Government — Rose @ 9:32 am

This Atlanta Journal-Constitution article is just one announcing that NCR will leave Ohio for the Peachtree State. The Dayton Daily News article is here. This is devastating news.

Turns out that Governor Ted Mulligan Strickland offered the company $31.1 million dollars in tax incentives to stay. I find it inconsistent at best, that democrats constantly stomp their feet about tax cuts/incentives not working and yet that is their first line of action when a situation like this arises.

NCR’s response to the offer (emphasis mine):

(A last-ditch $31.1 million offer by Ohio’s governor to keep the company in Dayton fell short of Georgia’s bid, an NCR official said.)

“We did not receive [the Ohio] offer until this evening. … It pales in comparison to what Georgia is giving,” he said.

So, it looks like the great state of Georgia will be passing out those jobs. This excerpt from the Atlanta Business Chronicle speaks volumes (emphasis mine):

Relocating to Atlanta — the commercial capital of the Southeast — makes sense.

Four of the cities in Ohio — Youngstown, Canton, Dayton and Cleveland— are among the top 10 dying cities in America, according to an August 2008 report in Forbes.

“They [NCR] can’t recruit talent to move to Dayton, Ohio,” the source said.

Delta Air Lines Inc. (NYSE: DAL), The Home Depot Inc. (NYSE: HD) and Sun Trust Banks Inc. (NYSE: STI) — big NCR customers — are also based in metro Atlanta.

Ironic is this quote (given yesterday) from “Hugging Jon Husted”:

“We have on multiple occasions reached out to NCR in an attempt to identify ways to secure their jobs and grow and be successful in Ohio,” Husted said Monday evening. “I am not willing to give up hope.”

Really, Jon? Do you “hope” that no remembers the burdensome tax increases for which you voted thoughout your lame, political career?

You know Jon, perhaps if you had you spent more time in Dayton – where you are SUPPOSED to reside – versus your “precious Columbus beltway,” you could have given NCR more “hope” that with new leadership, Ohio will eventually bounce back.

Our thoughts & prayers are with the NCR folks whose lives will be affected by this.

_______________________________________________

UPDATE, June 3 (from Tom): Carrying up and expanding on from Cornfed’s comment yesterday, here is more from the Atlanta Business Chronicle

Georgia enticed NCR with $60M package

Georgia officials offered NCR Corp. more than $60 million to lure the company to the state, which is double what Ohio offered the company at the last minute Monday night.

….. As speculation grew in recent days that a move was imminent, Ohio Gov. Ted Strickland stepped in and offered NCR a $31 million incentive package to stay.

But Alison Tyrer, a spokesperson with the Georgia Department of Economic Development, said she became aware of efforts to bring NCR to Georgia a few months ago.

She said total incentives in Georgia for NCR will exceed $60 million dollars.

NCR’s total investment in the state will be $30 million, plus an annual payroll in excess of $150 million, enabling the ATM maker to take advantage of the Mega Job Tax Credit, according to Georgia officials.

The Mega Job Tax credit is worth $56.8 million dollars, Tyrer said.

She said, even with the incentives, Georgia will still make $49 million in “tax profit,” so-to-speak.

Long-time readers here know that I am not a fan of tax incentives and abatements, and am genuinely amazed that they have passed legal muster all these years, given that they institutionalize unequal tax treatment of businesses. In a sense, they’re a reverse Bill of Attainder. But that’s really beside the point in this situation. The playing field is what the playing field is. If Ohio had a business-friendly tax climate and tax rate structure, NCR, a $5 billion company, would have thought much longer and harder about spending probably $20 million or so to leave, if they had thought about it at all.

Prelim Estimate: May Treasury Receipts From Economic Activity Down 24% From Last Year

Filed under: Economy,Taxes & Government — Tom @ 7:06 am

Here’s the rundown of what is decipherable from the last Daily Treasury Statements of May 2009 and May 2008:

UStreasuryDailies052909v053008

The listed totals represent what the federal government received each month as a result of economic activity. Other items that don’t relate to economic activity end up adjusting these totals when Uncle Sam releases the Monthly Treasury Statement. Last year, it was the economic stimulus payments (about $47 billion in May 2008), which Treasury erroneously treated as negative receipts instead of as the outlays they really were. This year, it will “offset” payments of about $4 billion, which are being similarly mistreated.

As you can see, tax money coming in as a result of economic activity  is down a lot.

Next month’s percentage shortfall will more than likely be much worse. June is supposed to be a big month for corporate income tax receipts, as well as for individual income tax receipts from those who make estimated payments. Those receipts have generally been running 30% or more behind last year, and there’s no good reason to think that the trend won’t continue.

The Monthly Treasury Statement, aka the report that is becoming almost indecipherable, which also contains information about outlays and the deficit, but not as normal people would define them, will come out on June 10.

Lucid Links (060209, Morning)

Filed under: Lucid Links — Tom @ 6:21 am

Noteworthy Net-Worthies:

As of early yesterday morning, according to a brief Associated Press report in a suburban Chicago publication, the Windy City “had seven shooting deaths in 24 hours this weekend, and police say they have no suspects in custody. All seven victims were men in their 20s or 30s, and all were shot to death.” Those who decide what is big national news have strange priorities. This string of violence in Chicago will make barely a ripple in the nationwide press, while the murder of one guy who killed pre-born babies for a living — the first of its type in 11 years, maliciously mischaracterized as part of a “string of shootings and bombings” directed at people like him that has in reality continually dwindled over the last decade — has dominated national news coverage. Why?

Meanwhile, an Army military recruiter was slain yesterday in Arkansas. This is another in a real string of attacks that goes back four years, but is of course not going to be big national news, because the victim didn’t kill pre-born babies for a living.

Travelers, Cisco Replace Citi, GM in Dow” — This is good news for the Obama administration, as two turkeys that have perfectly reflected what the POR (Pelosi-Obama-Reid) Economy has done to this country in the past year are being replaced by two stocks whose prospects are reasonably good, and will in a sense artificially push the index upwards. The lesson for stock watchers is that the Dow’s 30-company performance will be in reality an even less important indicator of the market’s performance than the much broader S&P and NASDAQ.

From Manny Lopez’s blog at the Detroit News“The bankruptcy judge hearing the Chrysler case said Friday he wasn’t going to rule on the asset sale until today or Tuesday, but a call from the White House must have prompted him to move faster because he ruled in the wee hours of this (Monday) morning.” So much for the alleged judicial independence or Arthur Gonzalez. Lopez goes on — “I’m sure we’ll hear today when questioned that the White House had nothing to do with that timing, just as we’ve heard that it is not making management decisions at GM or Chrysler.” Manny, I’ll bet no one even asked; shoot, they may not even have had the chance to ask. In fact, the Obama administration’s apparently new definition of a “press conference” is when the president comes out, makes a statement, and walks away.

Romney balks at government ownership of GM” — This is a real jaw-dropper, even for Objectively Unfit Mitt. Just  two months ago, when Barack Obama made his “I’m in charge now” move by ordering the sacking of General Motors CEO Richard Wagoner, Romney applauded the president’s de facto takeover of the company by saying “I’m glad that he’s expressing some backbone.” Zheesh. How much longer are conservatives going to put up with hypocritical nonsense like this?

Positivity: Ravenna native hailed as hero: Rescues four missing at sea

Filed under: Positivity,US & Allied Military — Tom @ 5:57 am

From Gulfport, Mississippi and Ravenna, Ohio:

May 24, 2009

A Ravenna native is being hailed in his Gulf Coast adopted hometown as a hero after saving the lives of four people who were missing at sea.

Petty Officer Levi Willett, a Ravenna native and member of the U.S. Coast Guard, helped rescue four people who had been floating in the water at least 18 hours.

Willett said five people, including three police officers had been boating when their boat crashed near Horn Island, about 20 miles off the coast of Gulfport, Miss. The four people who were rescued all were wearing life jackets, and had floated about 16 miles away from the site of the boat crash.

The rescue attempt is big news in the Gulf Coast area, Willett said, because successful rescues are rare.

“Everybody goes out to the Highlands to party for the weekend, and they end up getting caught in the high seas,” he said. “Usually we never find them. Most of the time it’s just disappointing.”

Willett’s team went in search of the lost boaters in their jet. Other members of the team were Commander O’Brien and Lt. Commander Fields, pilots of the jet; Petty Officer Hamilton, the drop master, and Petty Officer Friese. Willett’s role was as one of the observers and a member of the air crew.

The crew’s job was to locate the boaters and toss items to them, such as rafts, so they could be spotted by a rescue helicopter.

The crew had been searching for 3 1/2 hours, and decided to go off the grid to search for them.

“If we hadn’t gone off the grid, we never would have found them,” he said.

Willett looked into the water and saw a small dot, which he said was about the size of a pencil. As the jet drew closer to the boaters, he spotted four red life jackets and the lost boaters frantically waving for help.

“I’ve never been involved in anything like that in my life,” he said. “My adrenaline was going. Everybody was screaming.”

Typically, people can survive at sea only about 18 hours before succumbing to hypothermia, although the time frame varies depending on the water temperature, he said.

Willett said most people don’t realize how important it is to follow proper safety rules when boating. Lifejackets can be important not only to stay above water, but also so rescuers can spot people lost at sea. …..

Go here for the rest of the story.