Minner/Carney DEDO is a joke
I don’t really need to comment here. The Minner/Carney administration approach to economic development speaks for itself.
Community News
Brandywine Hundred, Del. —More financial service companies could expand into Delaware thanks to a tax incentive bill signed into law by Gov. Ruth Ann Minner on July 22.
Senate Bill 213 creates new tax rules for asset management corporations, letting the companies choose to pay taxes based on gross receipts instead of property, wages and sales.
Asset management corporations are defined in the bill as companies that receive at least 90 percent of gross receipts from advising clients about intangible assets.
Defining asset management corporations and freeing them from an onerous tax system will help attract more corporations to Delaware, said Judy McKinney-Cherry, director of the Delaware Economic Development Office.
“Senate Bill 213, the asset management corporations’ legislation, is a testament to Delaware’s agility, Delaware’s spirit of cooperation and ability to modernize our laws to remain competitive,” said McKinney-Cherry, during the bill signing ceremony at the office of BlackRock, Inc., in the Bellevue Corporate Center.
What’s wrong with that? It sounds like a good idea to me. Is it not enough to just hate people who don’t agree with you? Now you hate jobs and growth, too?
What’s life like in your Utopia? Does everyone live on a farm like the Ingalls family or is it more of a sharecropping society? Are there just mom & pop stores and one doctor that we all call ‘Doc’? Are there cobblers? Is there a printing press?
Funny.
Now then, I guess the story didn’t speak for itself (for some anyway).
Here is the thing Dom, I’ll put it on the bottom shelf for you.
The practice of trying to lure large companies with tax breaks is a short sighted gambit that only works as long as no other state decides to race us to the bottom.
Rather than bending over for every fortune 500 company that walks by, a better strategy would be to invest in new companies in growing fields. Small businesses comprise 50% of our economy, are less likley to move jobs out of state and reinvest locally – but they are utterly ignored by the Minner/Carney DEDO office.
Capice?
Spoken like someone who has been denied a grant application from DEDO.
http://blog.markell.org/?p=75#comments
You wouldn’t be holding a grudge would you?
Jack,
My company is in the process of acquiring a small company based in St Louis.
I approached the DEDO for information on the strategic fund to see if I could get slightly cheaper capital for the acquisition. They discouraged my application since we are initially only bringing three jobs to the state that will each pay over $40,000.
That is pretty shortsighted economic development given my company’s track record. But DEDO seems locked into funding ratios that favor large scale operations. Hopefully this is something that you could address as governor.
Not denied but discouraged. Anyway…Yes.