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Of course it does. Volkswagen has gotten hundreds of millions of dollars worth of incentives from the state of Tennessee for its Chattanooga plant, for example.
by twoodfin 10y ago
Of course it does. Volkswagen has gotten hundreds of millions of dollars worth of incentives from the state of Tennessee for its Chattanooga plant, for example.
http://www.timesfreepress.com/news/business/aroundregion/story/2014/jul/15/state-local-governments-boost-incentives-to-lure/252206/ http://www.timesfreepress.com/news/business/aroundregion/sto...
- themihai 10y agoI think it's a bit different because it looks like an investment from the government(i.e. public-private partnerships) not a tax break.
- qaq 10y ago"Combined with other property tax breaks, TVA incentives, road projects and other potential tax credits, Volkswagen could qualify for more than $300 million of grants" what is different about this?
- themihai 10y agoIndeed that's the case though I can't say that I agree with them. The main reason is because these 'special' deals stifle competition and I think that's what the EC rule is all about. I guess it's legal in the US but that doesn't make it "right"(at least in the EU) so I don't mind if the US would tax EU companies more. It would be a win-win for the most of the citizens(EU and US).
- qaq 10y agoIt would be Net loss for EU.
- themihai 10y agoI think it would be a win for ordinary citizens(both EU and US) and perhaps each individual state too(unless you consider tax a bad thing) because the taxes help the governments to develop the infrastructure(i.e. schools, logistics etc) thus they can create more value. I have doubts that these MNCs help the society that much to be eligible for these tax breaks. They are not charities... The loss for the EU as a economic partner is negligible.