On Sat, 13 Dec 2008 17:59:34 -0500, Tim wrote:

> Hachiroku ãƒ�ãƒ�ãƒ*ク wrote:
>> On Fri, 12 Dec 2008 16:10:18 -0500, Tim wrote:
>>
>>> I don't think this is a loan, is it? It is giving Toyota the money to
>>> pay these workers wages for 7 or 8 years, from the taxpayer and workers
>>> themselves. This is what has to stop.
>>
>>
>> It's called getting the manufacturer into your area. See, they aren't
>> dumb. They know that 4,000 underemployed people put more of a drain on the
>> system than giving the manufacturer a tax break. it works well because
>> instead of having 4,000 people making minimum wage, paying taxes at the
>> minimum wage rate, and often asking for assistance such as fuel assistance
>> or Food Stamps, you now have 4,000 people paying IN taxes at a higher rate.
>> While they may not be making as much as if they had 4,000 people paying
>> higher taxes AND a corporation paying taxes, they are still coming out
>> ahead.
>>
>> This is where 'trickle-down' works. Now you have 4,000 people with REAL
>> wages and more disposable income, so more people are going to open shops
>> in the area, and again the 'lost' taxes are more than compensated.
>>
>> So, they didn't really give anything away. They're probably laughing their
>> asses off at Detroit.
>
> So you pay $250,000.00 per job? So you use taxes to pay the wages from
> which taxes are then deducted.
> You must be an economist.


They aren't 'paying' anything. They have given Toyota tax breaks for
moving the factory into the town.

In the long run, it makes economic sense. Like I said, 4-6,000 people
*working* is a lot better than 4-6,000 people NOT working, or making
minimum wage.

The tax incentive will run out, and then the factory will be paying taxes.

The town is coming out ahead.