"Pentagon plans to cut defense spending by $78 billion will have a mixed impact in Massachusetts, with major defense contractors Raytheon Co. and General Dynamics Corp. taking hits on some fronts but potentially gaining in others....
The defense industry is a crucial cog in the Massachusetts economy....
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"GE seeks tax aid to limit layoffs; State says request may be a first" by Todd Wallack, Globe Staff / November 18, 2010
General Electric Co. has made an unusual offer to the state: Give us $25 million in tax credits, and we won’t cut any more than 150 positions at our aircraft engine plant in Lynn.
We call that EXTORTION!
This article is available in our archives:
So is that.
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Well, that's no good.
Typically the state grants tax breaks to companies that create — not cut — jobs, making the General Electric request unusual. State officials said they cannot recall another case of a company asking for tax subsidies while warning it will continue to reduce employment.
Related: Massachusetts' Lost Decade of Jobs
“We’re now having to pay companies not to fire people,’’ said Deirdre Cummings, legislative director of the Massachusetts Public Interest Research Group, a consumer group....
GE has said it will keep the plant open no matter what and will continue to upgrade equipment even if the state rejects its application. The plant makes engines mainly for jet fighters and helicopters....
GE gall!
General Electric receives billions of dollars in taxpayer funds annually in the form of government contracts, yet its federal income tax bill for 2009 was $0. The global conglomerate reported losses on its US operations, largely because of difficulties its GE Capital unit faced from the financial crisis, according to GE’s annual financial report....
Didn't the financial sector get a big bailout?
Yeah, poor GE.
The ultimate fate of the GE plant in Lynn may rest in Washington, D.C., not on Beacon Hill. The facility is heavily reliant on defense work, and its next big potential contract is caught in an intense struggle between the Pentagon and Congress.
The signaling of the end of empire.
President Obama and top US defense officials want to cancel development of an alternative engine built by GE in Lynn for the F-35 Joint Strike Fighter, which is expected to eventually replace the F-18 and some other planes. They argue that one engine is enough and that paying GE to build a second engine would be a waste of taxpayer money.
Congressional leaders, including most the Massachusetts delegation, are pushing to fund the engine. They argue it would help increase competition, drive down overall costs for the aircraft, and help support thousands of defense jobs across the country, not just at Lynn. The House recently moved to set aside around $485 million in the next defense budget for the GE engine....
Related: Israeli Plans to Buy F-35s Moving Forward
And what Israel wants, Israel gets.
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So who else is getting tax loot?
"Putting money where jobs are; Mass. using incentives selectively" by Todd Wallack, Globe Staff / December 29, 2010
No more state tax breaks for pizza parlors, hair salons, or convenience stores....
You know, the ones for people like you and me!
The changes are in response to criticism that the state has squandered millions of dollars over the years by handing out the tax credits willy-nilly for dubious projects, such as fast-food restaurants and retailers, that probably would have opened here anyway or that could siphon sales from other local businesses....
The largest state subsidy awarded this year — worth $22.5 million — went to Liberty Mutual Insurance Co., a Boston company that promised to create 600 jobs and invest $353 million in a new office tower near its corporate headquarters. Liberty Mutual also received a property tax break from Boston valued at $24 million.
The second largest, $6 million, went to gun maker Smith & Wesson Holding Corp., which has pledged to add 225 jobs to its corporate headquarters in Springfield....
In peace-loving, antiviolent Massachusetts?
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So who is next in line with their hand out?
"Lawmaker considers bill to offer tax credits to video game makers" by Bob Salsberg, Associated Press / January 18, 2011
Massachusetts video game companies could receive tax credits and other incentives under legislation that seeks to strengthen the state’s foothold in an industry that has sustained strong growth in a weak economy.
I thought they led kids into violence (although it is good training for the military).
Backers say the potential for job growth in video gaming and interactive digital media compares with what the nascent biotechnology industry offered Massachusetts a quarter-century ago.
Related: Biotech Giveaway Was Borrowed Money
Yeah, the interest payments only cost you about $800,000 dollars, taxpayers -- for companies that rarely, if ever, make profit.
Details of the legislation aren’t finished, but a draft offers a menu of possible tax credits tied to job creation or production goals for companies that design or produce video games.
Incentives would be offered to start-ups or existing companies that expand or relocate in Massachusetts. A so-called clawback provision would help the state recoup investments in firms that leave or fail to produce promised jobs.
State Representative Vincent Pedone, a Worcester Democrat, said: “Twenty-five or 30 years ago, no one in the Commonwealth knew what biotechnology was, and it has now become a critical part of our Massachusetts economy. We think the video game design industry has equal potential.’’
********
But critics question the wisdom of focusing on one industry when the state is facing steep fiscal challenges.
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Related: Slow Saturday Special: Schilling Strikes Out
Schilling's Wild Pitch
Schilling Hits the Showers
Big Schill must be pissed, huh?
Also see: Wind energy siting bill to be revived in Legislature
