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Business politics

Corporate Welfare For ADM, Office Depot, Univarc

The corporate vampires have such a low tax burden, despite their profitability, they cannot “take advantage of incentives negotiated with the state”. Right, here is their great idea. Create even more incentives negotiated with the state, with a half-hearted promise to keep the headquarters in Chicago. There is no language in the bill that even requires ADM to create the jobs the $30,000,000 is allegedly buying. In other words, if the bill passes, and in 2014, ADM decided to move to Mississippi, well then, this was all for nought.

ADM butt-crack
ADM butt-crack

Corporate welfare is an ugly practice. I’ve long been opposed to the sports stadium boondoggle, where the public pays for an expensive stadium, instead of the billionaires who own the team, but at least with those sorts of deals, the area gets to root for laundry with the city name on it. Some form of civic pride, some vague benefit. Corporate vampires like ADM draining the nearly bloodless corpse of the state government is much worse. It is as if Illinois was flush with cash – it isn’t – and a backwards state that no business wants to be located in – it isn’t. Notice too how Greg Webb of ADM won’t even guarantee that ADM will stay until the ink is dry on the bill.

So ADM basically says, “Give us money you don’t have, and maybe you’ll get something in return come election time. Or not”. What a crock.

State lawmakers Wednesday took a step closer to granting special incentives to companies seeking thousands of dollars per job created or retained in Illinois.

Agricultural giant Archer Daniels Midland Co. is seeking $5,000 per job per year, chemical distributor Univar Inc. almost $3,000 and OfficeMax, which became Office Depot after its merger this week, $1,570.

All the companies are seeking to collect their employees’ tax withholdings instead of forwarding them to the state. The reason for the requests is that companies have years in which they have little or no state tax obligation and can’t take advantage of incentives negotiated with the state.

The ADM measure would tie incentives to 300 jobs: moving 100 jobs from Decatur, where it’s based, to the company’s new global headquarters, and creating 100 jobs at the headquarters and 100 jobs in Decatur. The company would also be required to fill 100 positions annually in Decatur for five years, including jobs created because of retirements. The incentive will total about $1.5 million a year for 15 to 20 years, a company spokeswoman said.

Sen. David Luechtefeld, of downstate Okawville, asked during a Senate committee hearing whether ADM would guarantee it would keep its headquarters in the state if the measure is approved.

“I don’t know about the guarantee part,” said Greg Webb, ADM’s vice president of government relations. He later added: “I’m going to tell you that we have a preference for Illinois.”

(click here to continue reading Lawmakers closer to granting special incentives to companies creating or retaining jobs in Illinois – chicagotribune.com.)

Reliable, ADM In afternoon light
Reliable, ADM In afternoon light

The corporate vampires have such a low tax burden, despite their profitability, they cannot “take advantage of incentives negotiated with the state”. Right, here is their great idea. Create even more incentives negotiated with the state, with a half-hearted promise to keep the headquarters in Chicago. There is no language in the bill that even requires ADM to create the jobs the $30,000,000 is allegedly buying. In other words, if the bill passes, and in 2014, ADM decided to move to Mississippi, well then, this was all for nought. 

And then there’s these vampires, playing one area against another:

At the same hearing, Office Depot interim co-CEO Ravi Saligram said a new proposal requiring the company to create 200 jobs in the state, in addition to retaining 2,050, would cost Illinois $53 million over 15 years.

Saligram said the newly merged company is also seeking incentives from Florida before deciding where to locate its new corporate headquarters. Office Depot, which merged with Naperville-based OfficeMax, employs 1,700 at its Boca Raton, Fla., headquarters.

Office Depot already has a multimillion-dollar package of incentives with Florida and Palm Beach County based on job creation.

(click here to continue reading Lawmakers closer to granting special incentives to companies creating or retaining jobs in Illinois – chicagotribune.com.)

Industrial Devolution
Industrial Devolution

and these one:

Separately, House lawmakers Wednesday approved a bill that paves the way for chemical distributor Univar Inc. to receive incentives worth $5 million over 10 years. The Redmond, Wash.-based company is considering moving its headquarters to Downers Grove, said Rep. Michael Zalewski, D-Riverside, the sponsor of the bill.

Zalewski said Univar is different from other companies seeking incentives because it’s considering moving its headquarters to Illinois.

(click here to continue reading Lawmakers closer to granting special incentives to companies creating or retaining jobs in Illinois – chicagotribune.com.)

Whoever came up with this system should be exiled to Somalia. There is exactly zero evidence any of these corporate welfare programs help the state government, in any tangible way. None! or as Rep. Jack Franks of Marengo said:

There is no evidence that this is a good deal for the state.

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