Corporate Welfare Program Continues to Benefit Wealthy Counties, Awards Another $624 Million in 2020 | Eastern North Carolina Now

North Carolina’s largest “economic incentive” program continued to favor the state’s already wealthy counties, according to a new report.

ENCNow
Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Brian Balfour.

    North Carolina's largest "economic incentive" program continued to favor the state's already wealthy counties, according to a new report.

    The Job Development Investment Grant (JDIG) program is North Carolina's premiere corporate welfare program, doling out hundreds of millions of dollars in targeted tax breaks to politically-selected companies. It's the program largely responsible for the massive Apple deal announced last week.

    The Commerce Department just released its 2020 report on the program, (Read HERE) which included some key data:

  • Of the 27 grants awarded in 2020, more than half (15) went to Tier 3 counties. For programs like JDIG, counties are designated by 3 "tiers." Tier 1 counties are the 40 most economically distressed, the next 40 are tier 2, and the 20 most economically well off counties are tier 3. Seven of the grants were awarded to companies in Durham County, with 3 going to Mecklenburg and one to Wake. The rich get richer, off the backs of small businesses and hard-working taxpayers left to foot more of the state's tax bill.
  • Total awards could add up to $624 million over 39 years. About $587 million of that is for projects in Tier 3 counties.
  • Far and away the largest award went to Centene Management Company, for its project in Mecklenburg County. Centene could receive tax breaks of up to $388 million over 39 years. Centene is a healthcare administration company, and listed as among the top 50 largest companies in the nation. With roughly $75 billion in revenue, they ranked larger than Disney, Pepsi, Facebook and Procter & Gamble. Thank goodness the state granted them a massive tax break while small businesses across the state were forcibly closed by Gov. Cooper.
  • From 2003 to 2020, JDIG has granted awards that could total up to $1.6 billion in tax breaks over the life of the awards.

    Programs like JDIG are not only unfair because they grant certain companies political privileges that provide them with a competitive advantage, they also have a poor track record. As my colleague Jon Sanders wrote:

  • News analysis found that from 2009 to 2016, JDIG and OneNC awards resulted in just over half the expected jobs. About 37 percent of incentivized companies failed to create even a single job. These poor results were in keeping with established research into corporate incentives, as well as forthcoming new research.

Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




Republicans Should Be Wary Of ‘Infrastructure Trap’ John Locke Foundation Guest Editorial, Editorials, Op-Ed & Politics The Origins of the Cruel Ritual of Diversity Training


HbAD0

Latest Op-Ed & Politics

51 ex-spies lies to the American people threw the 2020 election
The former White House physician for Presidents Barack Obama and Donald Trump says that a new report this week about how President Joe Biden is struggling to function behind closed doors represents a serious threat to the U.S.
The Tikva Forum for Families of Hostages, an Israeli group created to represent the families of those taken during Hamas’ October 7 terrorist attack, urged President Joe Biden to stop interfering with Israel’s campaign to destroy the terrorist group.
how the Democrats set up the January 6 riot at the Capitol
this is why the left is now attacking Supreme Court justices
Addiction is not just a physical issue, it is also deeply spiritual

HbAD1

told to let all single males just walk in excpet for 6 countries
After saying the six-foot social distancing guideline during the COVID-19 pandemic “sort of just appeared,” Dr. Anthony Fauci on Monday testified that his statement had been “distorted” and that it “actually” came from the Centers for Disease Control and Prevention (CDC).
Accepting the unacceptable makes the unacceptable acceptable
combined traditional conservatives and populist conservatives win majority for first time
The state Supreme Court has agreed to hear one of two pending cases involving North Carolina bar owners challenging Gov. Roy Cooper's COVID-related shutdowns in 2020.
The Biden administration canceled over 350,000 asylum cases, allowing migrants to stay in the United States indefinitely in a move that experts called “mass amnesty.”
Former White House medical advisor Anthony Fauci changed his view of COVID vaccines from 2021 to 2024, clips show.
UK votes for parliament on July 4th, and EU voting for its parliament now

HbAD2

globalist PM Tusk coddles illegal aliens as soldier loses life defending border
inflated numbers do not tell the true story
Three knife attacks in a week, two by illegal aliens and one by ANTIFA, one killed
Historian Victor Davis Hanson reveals Biden's involvment
This project, if it proceeds as planned, will be another boondoggle of school construction by the Beaufort County Commissioners

HbAD3

 
Back to Top