Cheap ass North Carolina only gave Dell 240 million to come to the state

[MSgt213]

It took more than old-fashioned southern hospitality to convince Dell to build a new computer manufacturing plant in North Carolina. In fact, it took about $240m in tax incentives and loads of wrangling to put Dell in the Tar Heel State.

Dell, an obvious candidate for copious amounts of government aid, will put up its third US plant in the Triad area of North Carolina. The plant, set to open in the fall of 2005, will employ close to 700 workers in its first year and then make room for up to 1,500 employees within five years. The main role of the new facility will be to supply East Coast businesses and consumers with Dell desktops.

Dell has had a tough time of late. Its consistent, double-digit revenue gains put it only billions ahead of hardware rivals that have barely managed to break even. With its fiscal predicament in mind, Dell put the screws on North Carolina legislators to offer it the sweetest plum available.

Last week, the North Carolina General Assembly cleared the way for a $242m incentive package for Dell. The deal gives Dell a tax credit for each computer or consumer device produced in the state. Dell will receive a $15 per unit credit in 2006 and just a $6.25 credit from 2007 to 2019.

http://www.theregister.co.uk/2004/11/09/dell_nc_plant/

[BayCityProgressive]

1. HOLY SHIT

THAT IS A HUGE GIVEAWAY!

[BelleCarolinaPeridot]

2. Just a question :

Are we cheap because we are North Carolina or would you have called any other state that would have gotten the Dell jobs " cheapass " . But I would have liked to see that money go to other things in our state . I did not know that we had 240 Million to spend like that .

[MSgt213]

3. You guys could have come up with few hundred million more to help Dell out

After all you are getting a heap load of 28,000 dollar a year jobs.

[BelleCarolinaPeridot]

5. I am not going to benefit from any of this .

Just like any other Fortune 500 company that comes to NC , they are very nitpicky about who they want to hire . Then they have trouble reaching their " hiring " quota because of their strict hiring policies , and then they leave the state . Basing their reasons for leaving on underproduction - happens everytime .

[jmowreader]

9. Don't diss a $28,000/year job in North Carolina

$28,000 is decent money in this state. Before taxes that's $2300 per month--after taxes it still winds up being about $900 every two weeks. You can live on that here.

[girl gone mad]

4. Poor, poor Dell.

Dell, however, is making serious sacrifices to earn this package. It must, for example, pay 50 per cent of the health care costs for its employees. Ouch! In addition, Dell can only lay off 40 per cent of the employees to still qualify for the tax incentives.

The average salary for a Dell worker at the new plant is expected to be about $28,000. That's about what Michael Dell makes while going to the bathroom in the morning.

I used to know someone on the board of director's of a co. with Michael Dell's wife. Each of the Dell children has several nannies and drivers. They live a very opulent lifestyle.

Sad, sice Michael Dell got rich by essentially cutting out the middle man and keeping all of the money that used to go to salesmen and CS people for himself.

[sundancekid]

8. not to mention how many, many $$$ Dell himself sends to repukes

[LiberalFighter]

16. 40% of employees at that plant or all plants in NC?

[Liberal_Andy]

6. We need jobs to replace lost textile and tobacco work, what've you got?

A lot of good folks around here need work and we're very happy to see 1600 jobs announced. Also, part of the Triad's appeal is the coming FedEx hub, and I expect there to be more announcements soon, from companies that need access to overnight shipping.

[ElizabethEdwards]

7. Liberal Andy is right

Over 300,000 textile jobs left in the last four years, and the furniture industry is at risk (located largely in the Triad). It is helpful to have these jobs (albeit better if they paid more) because they are jobs and because the move might have a ripple effect.

[Liberal_Andy]

10. Thank you Elizabeth!

I mentioned your name in a letter to the editor, regarding that great Jefferson quote, hope you don't mind.

[NewJeffCT]

11. 'tax incentives' is different than a $240m payout/bride

A tax incentive is, "we'll waive your property taxes for the next 10 years if you agree to stay here for 20." If Dell does not come to NC, they get no tax revenue. If Dell comes, NC will still get tax revenues in the door less the $240 million.

It's not great, but I'm sure if Dell was offered $240m in incentives by North Carolina, there were probably at least half a dozen other east coast states that were offering incentives as well.

[IrishBloodEngHeart]

12. lets do the math

$240M/1500 employees=$160K per employee.

Why not just hire them for 5 years to do public works instead of giving dell free labor?

[Liberal_Andy]

14. The people getting the jobs don't give a rat's ass for math,

unless it's adding up how much it costs to feed the young'ns. (I mean "put food on your family")

[sandnsea]

13. $343,000 per employee

Just have a lottery, give the money to 700 people and let's see if they don't stimulate the economy with less damage to the environment and community than Dell. We're just stupid to not see that there's no free market when we're subsidizing our own jobs through tax give-aways.

[AP]

15. I believe it's a tax credit. It's not a handout.

They do have to sell computers, which creates an income tax liability, in order to get the credit. For example, it could be reducing tax paid from $100/computer to $85/per computer. That's very different from a lottery. That's $85 the state never would have seen.

Having said that, the tax break that bugs the hell out of me is corporate property tax breaks by local governments because that has the effect of shifting the tax burden to middle class homeowners and off of businesses.

[sandnsea]

17. It all bothers me

That was sarcasm there AP, not a real proposal, I understand how the system works. When you add up the tons of tax credits and other tax breaks these faceless entities get, add in the food stamps and other benefits low income workers have to have to survive, our "free market" system is just a joke. Especially considering if they have an "oopsie", they default, change their name, start over. We get less and less, corporations and stockholders get more and more. We take a Prozac to cope, shuffle along, and pass the nightmre on to a new generation who has it even worse than we did. Now we're going to be forced to invest in these "free market" corporations through privatization and the "ownership society", which will keep us even more dependent on them and less inclined to fight them as they choke off every last bit of our personal security and dignity. We owe our souls to the company store.

[juliagoolia]

18. They sent that many jobs from Austin to India

Already to do tech support! Michael Dell gave Bush a pile of Dough too and he is their number one tech supporter. When you call to get your computer fixed someone in India answers.

Not so nice.

[nikraye]

19. A sidenote: Dell is a big Bush/RNC contributor

Please boycott Dell. Tell everyone you know to do the same.

[Liberal_Andy]

20. So, I got a feeling my company has repug owners too!! Should I quit?

Or just slow down,,,:shrug:

[tsuki]

22. I don't do Dell.

Had one once, called up their service rep because the modem didn't work. He told me that it did. That was that.

Their is a nice company that builds my computers in town and services them. And the tech has an American accent.

[xchrom]

21. i know people need jobs -- not the point

corporations have duty to pay their fair share in tax revenues -- the corporation is as much a part of any community and uses a lot in services as any individual.
make no mistake -- this is corporate welfare. -- it's the very thing conservatives bitch at the poor about -- and dell is getting far more than any poor person gets from their subsidies.