Wednesday, May 16, 2012

If Delaware is so damn good a location for business . . .

. . . then why do we ever have to give tax incentives to get them to relocate here.

WNJ reports this morning that we are damn near ideal:

Assuming a 100,000-square-foot head office and 500 workers, the cost of running a headquarters in the Wilmington/Newark area totals $37.4 million a year, far below New York City, San Francisco and Philadelphia, according to Boyd’s study.
A New York-based headquarters could be expected to cost $47 million a year; Philadelphia’s cost is $40.6 million, according to the report.
“Wilmington is the lowest-cost region in the Northeast, which is quite significant,” Boyd said.
Delaware also boasts a relatively highly regarded health caresystem and a housing market that’s comparatively unscathed. The state also is near an international airport and a university that has built a solid reputation, Boyd said.
“A common denominator among successful headquarters attraction programs is a dynamic university presence,” he said.
So here's my problem:  taxpayers underwrote the creation of that medical system and the maintenance of that university.  We are relatively low-cost, not because our real estate costs are lower, but because our tax rates are lower.

In other words, the Governor and General Assembly have already spent millions of tax dollars to create this environment--yet we still have to cut deals to get companies to relocate here.

What's wrong with this picture?

No comments: