Partners in scam


Google is getting the blame, but who gave out the perks?
Google certainly broke their company motto with this one.

Google, whose informal motto is "Do No Evil," tried to browbeat lawmakers in North Carolina into silence while the company sought millions in tax breaks, according to a newspaper in that state.

The Charlotte Observer of Charlotte, N.C., has written an article detailing the behind-the-scenes machinations of a deal that will lead to Google building a data center in North Carolina.

Under the deal, Google will invest around $600 million and employ 200 people in a data facility in Lenoir, N.C.

Additionally, Google will get tax breaks worth around $89 million over the next 30 years, and the breaks could top $100 million. Tax breaks actually are not that unusual. Governments often provide subsidies and tax breaks to attract employers (although the size of the Google presence compared to the tax breaks seems a little on the high side.).

The real interesting part, however, is the effete disdain Google seems to have displayed in negotiations. Google executive Rhett Weiss was unhappy that the legislature wanted an estimate of how large the tax breaks would be and threatened to pull the project after a few minor word changes in a draft of the legislation, according to memos published by the paper and state officials.

As bad as Google's behavior is though, this story is really about distracting attention from the coconspirators.

While the legislature and the rest of the North Carolina state government are being portrayed as victims, it's actually their actions that made Google's behavior possible and a business necessity. Look at this bit again.

"Tax breaks actually are not that unusual. Governments often provide subsidies and tax breaks to attract employers..."

Government action made it possible.

It's not just the Big, Evil Corporation that is in the wrong here. Government enacted the rules, and then handed out exemptions to bribe employers.

Yep, I said bribe.

Government passes oppressive laws, then exempts specific companies to "attract" revenues. Meanwhile, all the other taxpayers not only have to pick up the slack in paying for government services that the new business uses, but paying for the revenue and regulatory shortfall. I call it the Stadium Game, because that is how I first noticed it.

It's why I push for the UNIFORM rule of law.

Uniform as in one set of rules, period. The second any individual or company gets an exemption, then the entire law is null and void.

Uniform as in one tax rate. No more sin taxes, and no more tax deductions. The second that the tax rate is changed for one thing, it is changed for everything. No more charging one tax for restaurants and another tax for groceries. No more progressive income taxes.

When government is allowed to change the rules for different circumstances, it complicates the law and leads to corruption.

Now some may say that there should be different rules because government is needed more in certain cases.

Exactly.

It's the only way we'll ever decide what parts of government are absolutely necessary and which parts should be scrapped.

— NeoWayland

Posted: Fri - February 9, 2007 at 03:48 PM  Tag


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