When word first spread that Toyota was moving jobs from California to Texas, some right-wing talking heads were blaming California’s government.
But within a day, the Wall Street Journal had figured it out: it was actually Texas’ government. Yes, the newspaper owned by Rupert Murdoch broke the story: Texas to Pay $10,000 for Each Toyota Job
Texas offered Toyota $40 million to move, part of a Texas Enterprise Fund incentive program run out of the governor’s office. At $10,000 a job, it was one of the largest incentives handed out in the decade-old program and cost more per job created than any other large award. Last year, Texas spent about $6,800 to lure each of 1,700 Chevron Corp. positions to Houston and $5,800 for each of 3,600 Apple Inc. jobs shifted to Austin.
Ok, so… let me see if I can get this straight.
Toyota just had a second year of record profits.
Toyota wasn’t actively considering locating in Texas. “Toyota narrowed its preferred locations to Denver, Atlanta and Charlotte, N.C.” before choosing to move to Texas because of the economic incentives.
$10,000 a job. Courtesy of Texas taxpayers.
Gosh, it’s a good time to be a corporation.
OK, I need to give the Wall Street Journal some credit here: they have been working the “state economic incentives for jobs” beat for a while now. From their 2013 story about Washington state’s genuflection to Boeing:
Officials from most of the states Boeing invited to participate have publicly expressed interest. Missouri’s governor, Democrat Jay Nixon, on Tuesday is to sign a package of incentives approved last week by the state’s largely Republican legislature. The measure would be worth $150 million annually to Boeing if the company creates at least 2,000 jobs in Missouri.
Ok, by my math: $150 million a year divided by 2,000 jobs equals $75,000 per job per year… which would have been courtesy of Missouri taxpayers.
Back to their story:
Washington’s legislature last month approved sweeteners valued at $8.7 billion over 16 years—which experts say is the largest corporate-incentive package in U.S. history—in an effort to keep the jobs
And, back to my math: $8.7 billion over 16 years is about $544 million a year – or, more than three times what Missouri offered.
If we’re still talking about 2,000 jobs… that’s about $272,000 per job per year, courtesy of Washington state taxpayers.
(Boeing, by the way, just distributed $3 billion as dividends and stock buy-backs.)
Yes, this is what has been going on, all across America. Billions of dollars in government aid to corporations, even as Congress cut the Food Stamp program and rejected an increase in the minimum wage.
It’s a really good time to be a corporation.
Or a CEO.
Or a lobbyist.
(But not such a good time to be a US veteran. More than a million veterans are minimum-wage workers who won’t see their pay increase. And another million veterans just had their Food Stamp allotments cut. Where are our priorities?)