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.
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.
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.
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.