When Google opened a major routing center in Lenoir, N.C., some community members complained that the town gave Google too much in the way of incentives, like sales-tax-free electrical power. Now Google seems to be giving back: the company is hooking up downtown Lenoir with free wireless Internet for the next three years. This is commonly known in economics textbooks as “enlightened self-interest.” (HT: Annitra Morrison) [%comments]
How to Get the Google Hook-Up
TAGS: Google
and 
. You can also watch it on 
Why isn’t this considered tax cuts for the rich? The size of the tax cuts is measurable. The size of the benefits for the community and who in the community will benefit (not all equally) cannot be measured.
I would prefer that all of us get tax cuts (we all get treated fairly) rather than give google one big one.
RonB – please don’t generalize about the folks in less urban parts of NC. We unenlightened folks live everywhere.
Hmmm…if eliminating taxes for one corporation encourages that corporation to open (and create jobs and provide services) in that town…maybe eliminating the corporate tax entirely would encourage more companies to relocate to (or stay in) that location. And since that would apply to all companies, there would be no claims of favoritism.
Interesting…
No tax revenue was eliminated in this case, since the tax break was an incentive to get Google to open a routing center. The net tax revenue for the city increased as new jobs were created an additional spending took place as a result.
CJ- The same principle applies to state income tax. The states without it are gaining residents.
The City of New Brunswick New Jersey gave huge tax concession to Johnson & Johnson so that they would build their new corporate headquarters in the city.
To this day, I’m paying higher real estate taxes (>$4,000/yr on a 785 sq/ft house and a 25×100′ lot) to compensate.
J&J employees leave the city like rats from a sinking ship every night at 5:00PM, making the city look like a wasteland.
Corporations earn profits and are legally treated as a citizen, let them pay their taxes just like everyone else does.
No Comment