HARDWARE FLOGGER Dell has been sued by Lebanon, the town, not the country, for failing to deliver promised jobs in exchange for tax breaks.
The good people of Lebanon, Tennessee, which is in the US, gave Dell big tax breaks for setting up a plant in the town.
According to the local telly, Dell shut down part of its Lebanon operation in January. While the plant remained open, Dell handed p45s and pink slips to half of the 1,000 employed.
City councilman William Farmer is miffed that in 2000 the city gave Dell a 40-year property tax break for its plant. The deal said that Dell would provide 1,000 jobs until the year 2040.
Dell has saved more than $800,000 thanks to the tax breaks, but the town fears that the company will make more cuts at the plant. µ
All Lebanon has to do is hand Dell their "pinkslip" - revoke the tax break for breach of contract and collect unpaid taxes, plus interest and penalties.
Ted, I am in complete agreement with you.
Definitely, a deal is a deal, and corporate buttboys need to learn that unlike New York, not all states are filled with lying weasels, i.e., politicans, who are willing to give away tax monies and just overlook when the corporate buttboys lie in return.
Bill Dell for what their taxes would have been, plus interest. Then send them a full tax bill from this point on.
That is a great idea. Tax the company more so it becomes too expensive for them to keep open and everyone loses their job to someone overseas. With the economy the way it is, I'm sure Dell and any other company is doing what they can to just stay in business. When the economy turns around where do you think Dell will start hiring first?
When the economy turns around where do you think Dell will start hiring first?
China?
you seem to miss that other businesses in Lebanon seems to be willing to pay their share. Corporations have been playing the states against each other to attract operations. You think playing with peoples lives like that is okay?
Don't you feel like the corporations are just saying , "which one of you suckers are hungry enough to eat this?". "Which one of you sucker-states are willing to sacrifice services for our jobs?".
The corporations play the states, counties, and countries against each other with forecasts of doom and gloom, and required downsizing.
A deal is a deal. And you cannot tell me Dell would not have sued Lebanon if they reneged on their end!.
Downsize! Downsize! reduce Cost! Cut jobs! .... Wait a second... where did the customers go?!?... you know, the people who have jobs that can pay for things? In the un-employment line! Making even more burden to the locality.
Never give tax break "deals" to corporations. 1) It turns different cities into bidders against each other and hurts the community by draining the city's budget. 2) Corporations will often short change on the deal, and sometimes use the money they saved to in a few years better position themselves somewhere else where labor is a lot cheaper. Like outside of the country.
Regulate, regulate, regulate.
If nobody gives tax breaks to individual companies then those companies will just go to the cities where the cost of business is lowest(a big factor of that of course is taxes). No big deal. Much less messy than all of this other nonsense. If Dell broke their contract let them pay their 800k back, fire all the workers, and move elsewhere. I really don't care about Lebanon, TN I'm afraid. What I do care about is how much money my next computer costs.
Rather than tax breaks, the sovergn state of Deleware set up lax laws for credit card companies so that they would attract banks. The result: the whole of American's (that's 'States' for you Europeans) economy is going down the crapper.
I can understand that some areas have higher or lower taxes because of the services they offer. But when states (or provinces, or whatever) begin cherry picking and playing favorites they are just setting themselves and everyone else up for failure.
Jeff,
It's clear that Dell will lay off people regardless of the tax incentive they recieve. So why give the incentive? If you believe that Dell will not lay off more just because of the tax incentives, you're a sucker.
By your logic, any company can lie and get a tax break in exchange for the promise of keepng jobs at a town, then break their promise, and still get the tax break.
Dell laid off half of the work force there. Mikey Dell can pay his taxes like a good little boy. I don't beieve in rewarding liers.
To "Not a Socialist": YOU would care if it were members of your family whose jobs were at stake or your OWN job. If Dell was the employer that helped to put food in the mouths of your children, you would care. Over half of the company's workers are gone, without jobs, and even more jobs will probably be lost in the next few months. My family and I understand what this means, considering that my husband has been a loyal worker for many years for Dell, and is faced with the high likelihood of being let go within a month or so. For someone who claims to "not be a socialist" you seem to not mind helping to put people on WELFARE so that you can save a few bucks on a computer. Our economy is not going to get any better by taking away jobs and giving them to people overseas. The whole concept of supply and demand is going to be tragic, because as more jobs are taken away, American people will lack the ability to purchase, then companies will fail.