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DeVille’s tax break for the wealthy

Jun 18th, 2008 by Taylor Armerding

Question: When is a tax break for the wealthy not a tax break for the wealthy?
Answer: When a Democrat calls it an “economic stimulus plan.”
Of course, it’s still a tax break for the wealthy - calling it by another name doesn’t change the reality - but most Democrats are loathe to give even the slightest impression that they are anything but champions for the little guy, or girl. It might undermine Barack Obama’s “End-the-Bush-tax-cuts-for-the-wealthy!” mantra.
So, here we are in Massachusetts, where Barack-backer Gov. Deval Patrick will be giving away $1 billion of the taxpayers’ “hard-earned” money during the next 10 years to “life sciences” firms. The spin is that this will create all kinds of good jobs at good wages. But one wonders why, if biotech is such a good business bet, it will take $1 billion to prop it up enough to create some new jobs. When entrepreneurs see a good business opportunity, they generally go for it without looking for a government handout first.
One should also note that a chunk of this money - which breaks down to $500 million for capital improvements, $250 million in tax credits and $250 million in grants - will likely be going to some pretty big firms, headed by some very rich CEOs. Why else would some of them have been smiling so broadly at the passage of the governor’s bill?
A few of the little guys and girls aren’t applauding. A mini-version of the big $1 billion life sciences initiative played out in Gloucester this past week, with the announcement that Boston developer Sam Park would receive a $2 million state grant to help him with the infrastructure costs for his impending Gloucester Crossing mall. Critics complained that a wealthy guy like Park shouldn’t be getting a grant or a tax break - the money should have gone to education.
Obviously, you folks need another sip of the Kool-Aid. Take a drink and repeat after me: “economic stimulus … economic stimulus … economic stimulus …”

Posted in Massachusetts politics, State issues, Taylor Armerding | Comments

  • JasonW
    Huh?

    This isn't a shot in the dark. Biotech is growing fast, and almost every state in the country is trying to get that business home.

    Maryland just put together a $1.1B package. California, already the leader, pledged $3B in stem cell research. Texas passed $3B for cancer research. Georgia is putting up millions, and will also be the home to the National Health Museum.

    We can praise tax cuts from the right as supply-side stimulation, and blast tax cuts from the left by making fun of Jonestown, but it's not always that simple. Let's remember this conversation the next time we start complaining about people leaving Massachusetts and being left behind the rest of country.
  • Stephanie Mulch
    Spoken by a true Republican.
  • jacrlsn
    Comments 1 & 2 above point out why we elect politicians who have their hands in our pockets and/or are elected while in jail or are going to jail or should be going to jail. If we believe the crap they say then the Governor is right "together we can" go straight to tax hell.
  • JasonW
    @Jim Carlson
    I'll let you in on a little secret: every politician you or I or anyone will ever elect in this country will need to spend money to get things done.

    If you have an objection to this particular topic, why not give us some insight? Let us know what you think about trying to bring biotech companies to Mass?

    It's a little more difficult than just spewing out the same tired divisive catchphrase-laden comments, but it may be a bit more constructive.
  • jacrlsn
    JasonW, Are you by any chance a relation to Michael Cook?
    Of course they will have to spend money. The question you should be asking by now is;is it the right amount or is it more than they have?
    In regards to your biotech question, a billion dollsrs or not , the biotech executives are going to think twice before coming to "Taxachsetts" or staying in "TAxachusetts" if they happen to already be here.
  • StemCell
    Jim, have you been in Cambridge lately, have you seen the transformation of Central Square, do you know how many biotech startups are along 95, when was the last time you visited Cummings Center, what this packet is for is not to lure the companies here but to keep them here, they are here already, they came because of the huge pool of talent in the local schools and those schools are still pumping out the new bright lights. Biotech is beconming a big slice of the pie, take the money away from the oil companies or at least stop giving them so much, fund the new industrial revolution, and if your lucky they might come up with something that will keep you alive to see it
  • jacrlsn
    #1 I avoid the Peoples Republic of Cambridge at all costs.
    #2 yeah they replaced all the computer companies thay went out of business,
    #3 I worked in the Cummings center for 6 years and USM for 22 years before that. All the firms paying rent to Cumming still don't employ as many people as USM did. Its great but still not enough.
    #4 yeah and out genius legislatore want to take 2 and a half percent per year of the endowments of the colleges that create that pool of talent.
    #5 yeah and maybe not too.
    #4 and a half. sounds like a good socialist scheme.
  • Jules Gordon
    The Governor goes to California with 1 billion dollars in his pocket and wins a biotech version of an Oscar. Everyone was impressed. (How hard is that with $1,000,000,000 give away cash?)
    That money will go the same place as the Big Dig money.

    No ones coming here unless there is a GOOD reason; a technically trained labor supply (no factory work here.), a business friendly political environment (we have a one party state looking to close business loop holes and find other sources of revenue) It would be nice if the citizens of this state would not be fleeing for places elsewhere.

    Why should anyone come here, when we aren't staying.

    There's lots more, but why bore you?
  • JasonW
    Yes, we know that there is a heavier tax burden in Mass than some other states. That's one of the reasons why this package was put together! To include tax credits and capital improvement money to ease that burden.

    As I've mentioned before, Gov Patrick wasn't and isn't the only one marching around with a large incentive package. There is a lot of potential in biotech, and everyone is trying to lure that industry here.

    It's a terrible attitude to just say that everyone is leaving Mass, so why should anyone come here. Should we just give up? Stop trying to get new business in? Stop fixing roads and railways? Keep flights out of Logan? Tell all of the universities to relocate?

    @Jules Gordon, I'm certainly not bored, keep them coming. Anything, really.
  • jacrlsn
    Just whose tax burden is being eased? Someone's taxes have to go up if bio-techs' goes down. stem cell says they're already here, are they or aren't they?
    The politicians won't give up as long as we keep feeding them.
    Apparently we (the government) gave up fixing roads sometime ago, but they sure spent the money budgeted for road maintenance. If we tax 2 and 1/2% of a Universities endowments, we are telling them to relocate.
    DOWN WITH THE STATE INCOME TAX!!!! If they don't get it they can't spend it.
  • mike cook
    so, what's with the trib's blogs?

    I've been busy working, but there's not been anything new here in almost a month!

    I guess I'll have to find some place else to try and cause some mischief
  • Harry Birmingham
    Mike Cook - I, too, ask what is with the blogs. I agree with your statement to try causing mischief some where else . I could be kidding but then....
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