News from the Iowa Economic Development Authority (Branstad's "Department of Crony Capitalism") announced KraftHeintz as the latest winner inn the State of Iowa's never ending attempt reduce local tax revenues and enhance the profits of out of state multi-national business interests.
Iowa will give KraftHeintz $4.75M in tax incentives to keep the meat processor in Davenport even though the plant is going to employ approximately 900 fewer workers in the future.
The KraftHeintz folks will have to pay for the demolition of their old and out-dated facility. (The result of shrewd and skillful negotiating by the Dept. of Crony Capitalism.) The State's highly skilled negotiator on this tax money give-away was Debi Durham. (She can now be remembered as "Debi Does Davenport!") She is the Director for the state's Department Crony Capitalism. Debi stated "Will I take this deal any day? You bet!" (Although a "You betcha!" would have been much more Iowan.) Debi went on to say, "This is a future play. This is a legacy play. And I feel good about what we did today."
Well Debi...what did you do today?
The deal for Kraft is a hard one. To stay in Iowa, Kraft has to 1) receive a $1M refund in Iowa state taxes, 2) receive $750k in research tax credits, 3) have to demolish their current facility at their expense but Kraft will receive $3M in a "forgivable loan" paid after the current faciility is demolished. In return for this sacrifice, Kraft has "promised" to pay atleast $17.64/hour for 261 jobs (of the approximate 500 jobs) that remain there. The company is reducing the size of its workforce approximately by 900 workers.
IN addition, the City of Davenport has agreed to offer $10M in tax incentives and will provide another $6M to provide infrastructure for the new facility.
Iowa State University economist David Swenson stated, "This is a hard one to swallow." (Obviously he does not understand the technique employed by Ms. Durham here. But then he is just an educator and not an entrepeneur like Debi.) Swenson went on to say that he doesn't think the City of Davenport will ever "break even" on this one.
Davenport Mayor Gluba said something like "when you're hungary and want a meal, a sandwich will do." He doesn't like the idea but the saving of a few jobs makes it pallatable, I guess. He said, "You gotta do what you gotta do but it's a sad commentary on modern day capitalism that you have to give up property tax money, which is used to fund our schools, for jobs. But if we don't do it, we don't have the jobs to pay our taxes."
(Obviously Gluba does not understand the principles of crony capitalism. What the City should do is buy stock in KraftHeintz and cash the dividend checks into the city's general fund!)
Meanwhile, rumor has it that Ms. Durham is trying to get the state of Iowa involved in relocating an NFL franchise to the state. Her Department has the wherewithall to skillfully negotiate an out of state robber baron to come in and have "we the people" of Iowa build him a new state of the art stadium (at taxpayer expense) complete with infrastructure. She could even arrange that the Chief Crony Capitalist, Terry Branstad would be there and cut the ribbon on such a facility!
Thank God crony capitalism and rugged individualism is the driving force behind Iowa industry and it's JOB CREATORS! Can you imagine what folks would have said if the Big Lug would have put together a business package lie this? and finally may I say, Thank God the role of government is NOT to choose winners and losers. Thank God we the good folks of Ioway have a leader like Terry Branstad to make these choices for us!
Iowa will give KraftHeintz $4.75M in tax incentives to keep the meat processor in Davenport even though the plant is going to employ approximately 900 fewer workers in the future.
The KraftHeintz folks will have to pay for the demolition of their old and out-dated facility. (The result of shrewd and skillful negotiating by the Dept. of Crony Capitalism.) The State's highly skilled negotiator on this tax money give-away was Debi Durham. (She can now be remembered as "Debi Does Davenport!") She is the Director for the state's Department Crony Capitalism. Debi stated "Will I take this deal any day? You bet!" (Although a "You betcha!" would have been much more Iowan.) Debi went on to say, "This is a future play. This is a legacy play. And I feel good about what we did today."
Well Debi...what did you do today?
The deal for Kraft is a hard one. To stay in Iowa, Kraft has to 1) receive a $1M refund in Iowa state taxes, 2) receive $750k in research tax credits, 3) have to demolish their current facility at their expense but Kraft will receive $3M in a "forgivable loan" paid after the current faciility is demolished. In return for this sacrifice, Kraft has "promised" to pay atleast $17.64/hour for 261 jobs (of the approximate 500 jobs) that remain there. The company is reducing the size of its workforce approximately by 900 workers.
IN addition, the City of Davenport has agreed to offer $10M in tax incentives and will provide another $6M to provide infrastructure for the new facility.
Iowa State University economist David Swenson stated, "This is a hard one to swallow." (Obviously he does not understand the technique employed by Ms. Durham here. But then he is just an educator and not an entrepeneur like Debi.) Swenson went on to say that he doesn't think the City of Davenport will ever "break even" on this one.
Davenport Mayor Gluba said something like "when you're hungary and want a meal, a sandwich will do." He doesn't like the idea but the saving of a few jobs makes it pallatable, I guess. He said, "You gotta do what you gotta do but it's a sad commentary on modern day capitalism that you have to give up property tax money, which is used to fund our schools, for jobs. But if we don't do it, we don't have the jobs to pay our taxes."
(Obviously Gluba does not understand the principles of crony capitalism. What the City should do is buy stock in KraftHeintz and cash the dividend checks into the city's general fund!)
Meanwhile, rumor has it that Ms. Durham is trying to get the state of Iowa involved in relocating an NFL franchise to the state. Her Department has the wherewithall to skillfully negotiate an out of state robber baron to come in and have "we the people" of Iowa build him a new state of the art stadium (at taxpayer expense) complete with infrastructure. She could even arrange that the Chief Crony Capitalist, Terry Branstad would be there and cut the ribbon on such a facility!
Thank God crony capitalism and rugged individualism is the driving force behind Iowa industry and it's JOB CREATORS! Can you imagine what folks would have said if the Big Lug would have put together a business package lie this? and finally may I say, Thank God the role of government is NOT to choose winners and losers. Thank God we the good folks of Ioway have a leader like Terry Branstad to make these choices for us!
