2-29-2004 N.Carolina Banks on Incentives to Rebuild
North Carolina, responding to tens of thousands of layoffs in traditional low-skill industries, is spending millions on grants and tax incentives to lure new business to the state, but some economists and analysts question the strategy.
They say the incentives play too little a role in attracting new corporations to make the expense worthwhile. Small business owners say offering cash and tax credits to attract large companies is unfair, both to companies already there, and to those with small and medium-size work forces.
Among state programs, North Carolina's Job Development Investment Grant program has awarded benefits totaling about $27 million since May 2003 to GE Nuclear Energy, a GE Power Systems business (NYSE:GE - news); General Dynamics (NYSE:GD - news) Armament and Technical Products Inc.; R.H. Donnelley Corp. (NYSE:RHD - news); Goodrich Corp. (NYSE:GR - news); Israel's A.F.G. Wipes and Infineon Technologies North America Corp
Cities and counties also offer development grants, often in the form of reduced property taxes for one to five years.
North Carolina has suffered sweeping layoffs amid nationwide economic weakness, with the manufacturing and technology sectors losing more than 22,000 jobs. The unemployment rate climbed from 3.6 percent in 2000 to 6.8 percent in June 2003.
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That can't be, the AT experts say no one has lost their jobs. What's wrong with these Politicians.
North Carolina, responding to tens of thousands of layoffs in traditional low-skill industries, is spending millions on grants and tax incentives to lure new business to the state, but some economists and analysts question the strategy.
They say the incentives play too little a role in attracting new corporations to make the expense worthwhile. Small business owners say offering cash and tax credits to attract large companies is unfair, both to companies already there, and to those with small and medium-size work forces.
Among state programs, North Carolina's Job Development Investment Grant program has awarded benefits totaling about $27 million since May 2003 to GE Nuclear Energy, a GE Power Systems business (NYSE:GE - news); General Dynamics (NYSE:GD - news) Armament and Technical Products Inc.; R.H. Donnelley Corp. (NYSE:RHD - news); Goodrich Corp. (NYSE:GR - news); Israel's A.F.G. Wipes and Infineon Technologies North America Corp
Cities and counties also offer development grants, often in the form of reduced property taxes for one to five years.
North Carolina has suffered sweeping layoffs amid nationwide economic weakness, with the manufacturing and technology sectors losing more than 22,000 jobs. The unemployment rate climbed from 3.6 percent in 2000 to 6.8 percent in June 2003.
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That can't be, the AT experts say no one has lost their jobs. What's wrong with these Politicians.