More tollways are coming to the area. An article from the Dallas Business Journal outlines the new toll roads and toll lanes that will be coming to the metroplex in the coming years. Some major arteries such as I-35E, I-35W and SH-183 are just a few to get the new tolls.
How do those corporate incentive packages look now?
Wouldn't the $40 million we just gave Toyota plus the $6.75 million that the generous citizens of Plano just gave them, be nice to have back? What makes it worse, Plano citizens approved $900,000 of the $6.75 million for Toyota to covers "relocation expenses." Those are the neighbors we all should look for — the ones that pay for you to move.
I wrote about Toyota's big move a while back. See here.
It's not just Toyota, there's many other companies receiving money from us. (the taxpayers) Toyota is just the high-profile example right now. Is Tesla next?
The theory behind the corporate incentives: "we spend a little to get a company here and the employees who move here will pay us back via their taxes." So how do I know this is false?
Look at your everyday life. Are your property taxes going down? Are your utilities going down? is your commute taking less time? Why not? You're footing the bill for the companies. Ask yourself: what are you getting in return?
If you missed the part about your utilities, here is an article from DMN. Yep, our utilities are going up too, even after a nice quarterly profit.
Is the existence of the toll roads due solely to the money we (taxpayers) love to give out? No. Could the money that's given to corporations go to infrastructure? Absolutely.
In reality, we've given the money for our roads to companies that will add more people on our roads. We lose valuable tax dollars and increase congestion on our underfunded roads. We are the big losers. The companies are the winners. Bravo to Toyota for following the financial fundamentals: Increase profit. Decrease risk.
We've forgotten some economic fundamentals in the name of "job creation." One of which is "money follows talent." Companies want the talent that our universities and schools are producing. There's a reason Kentucky (again, sorry Kentucky) isn't even getting a chance at offering their money to Toyota. Kentucky could offer everything in the world and Toyota wouldn't consolidate operations there. The talent is here. Let's call the bluff on prospective companies. I bet you many still come, and if not then it's taxpayers in other states who are left with higher taxes, utilities and longer commutes.
This economic theory sounds good, but we are left paying for the experiment in more ways than one.
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