While Idaho legislators are looking for money in all the wrong places, the text from a Dept. of Commerce brochure is quite revealing. In short, the state and local governments are in an economic civil war with their neighbors in a battle predicated upon seeing who can give away the most.
Businesses decide where to locate based on how much they can screw the governments out of in the way of cash, tax credits, and other incentives. The intended result is always JOBS! However when the business doesn’t pay property tax for five years and can depend on getting free services, it is a recipe for financial disaster.
When businesses don’t pay taxes, the justification is always, “They create jobs and the employees pay taxes.” Truth is, the employees consume services. They poop in our sewers, fill our schools with kids, jam the roads with traffic, and create a demand for police and fire–none of which is paid by the companies that get the tax breaks.
When the housing bubble springs a leak, Idaho is at the top of the heap in foreclosures, education crises, and unemployment.
Here is what the Dept. Of Commerce offers:
Together with some of the lowest overall costs of doing business in the country, Idaho has a variety of incentive programs designed to assist business start-up, business expansion, and business productivity.
From financial incentives to business tax credits to worker training programs, Idaho’s incentives are designed to enhance overall profitability and make doing business from Idaho very attractive. Plus, Idaho is near the top in virtually all indicators of business and economic vitality.
Companies looking to expand into Idaho should consider:
– A reasonable income tax. Companies that manufacture and process typically pay much less than the state’s 7.6 percent corporate income tax rate. That’s because of a generous investment tax credit for capital intensive businesses. Tax credits carry over 14 years.
– No sales tax for equipment or raw materials used in food processing, manufacturing, pollution control equipment, utilities or industrial fuels.
– Idaho is third in the nation for the most reasonable property tax. Then again, there is a good chance that companies won’t pay property tax for the first five years after start up. An Idaho statute allows local counties to make that decision for manufacturing enterprises that invest a minimum of $3 million.
– The Idaho Department of Labor can offer businesses customized recruiting services as well as workforce training. Financial reimbursement up to $3,000/employee is available to eligible companies for training
new employees. Idaho’s colleges and universities also offer customized workforce training programs.
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