Corporate Welfare: State Taxpayers Pay to Train Workers for Large Corporations
Wednesday, January 11, 2012
Taxpayers are increasingly covering the cost of training for a corporation’s workforce, without getting any long-term benefit in return.
For instance, North Carolina has spent a million dollars for 400 residents to learn skills for working in a Caterpillar factory, in addition to a $4.3 million on a community college program customized specifically to meet the company’s labor needs. While the investments are expected to help Caterpillar remain in the state, there are no assurances that will happen.
Previously, the state spent $2 million to train employees for a Dell factory. Five years later, the computer maker closed down its operation, costing North Carolina nearly 1,000 jobs.
Among the subsidies given to corporations, according to a report by Good Jobs First, are income tax credits, cash grants, low-cost or forgivable loans, reimbursement for worker training expenses and reductions in property taxes.
-Noel Brinkerhoff
Private Sector Gets Job Skills; Public Gets Bill (by Motoko Rich, New York Times)
Money for Something: Job Creation and Job Quality Standards in State Economic Development Subsidy Programs (by Philip Mattera, Thomas Cafcas, Leigh McIlvaine, Andrew Seifter and Kasia Tarczynska, Good Jobs First) (pdf)
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