Corporate Welfare Weekly - May 3rd, 2010 – Issue 48
May 3rd, 2010
Recent Announcements…
Amazingly, after a busy last two weeks, there are no new incentive announcements!
Goodyear to lay off 70 workers after receiving incentives to retain jobs!
According to the Fayetteville Observer, Goodyear is seeking to lay off up to 70 employees! The “voluntary” layoffs are related to company upgrades. The February 1st issue of the Corporate Welfare Weekly explained that both Goodyear Tire and Bridgestone Americas were about to receive their first $2.5 million in incentive payments for job retention. So what's the deal?
“Goodyear Tire & Rubber Co. has asked for about 70 employees in Fayetteville to sign up for a voluntary layoff related to the company's continued shift from basic tires toward fancier versions.
Plant spokesman Richard Evans said in a statement that the action is "in response to an increase in production of premium brand tires that are built on the plant's more highly automated equipment."
"The increase in production of premium brand tires, or high value-added tires, will result in the idling of some less-automated machinery," according to his statement.
As a result, some workers will be shifted to other areas of the plant, Evans said. The deadline to sign up for the layoff - expected to start in early May - is this week, he said. Evans indicated it is not known at this time how long those layoffs will last. The plant employs about 3,000 people.”
Study slams NC on tax environment
The Charlotte Business Journal reported on a study that slammed NC on its tax environment.
“North Carolina has one of the 15 worst tax environments for small businesses in the country and the worst in the South, the Small Business & Entrepreneurship Council says.
The council’s Business Tax Index 2010 places North Carolina with states such as New York,California and Massachusetts for having relatively high tax rates on personal income and corporate profits.
The index also penalized North Carolina for having higher unemployment and gasoline taxes than most states. If not for having the country’s 12th-lowest property-tax rate as a percentage of household income, North Carolina would have scored worse than its No. 37 ranking.
The state’s neighbors fared much better in the rankings, which assessed 16 tax measures and combined those into one score. South Carolina placed No. 12, Tennessee was No. 13 and Virginiawas No. 15.
South Dakota ranked No. 1 on the index of most-favorable tax environments. The District of Columbia ranked No. 51.”
American Express incentives hearing delayed
According to the Greensboro News & Record, the public hearing originally scheduled on May 4 to discuss economic incentives for American Express has been delayed.
“The city and county will not hold public hearings next week on economic incentives for a $400 million American Express data center as planned.
The Guilford County Board of Commissioners’ hearing on May 6 has been delayed; the city has not set a hearing for May 4 because it has no request to do so yet.
City and county staff members said residents should not read anything into the delay for the project, which could bring 150 jobs to Guilford County.”