Corporate Welfare Program Continues to Benefit Wealthy Counties, Awards Another $624 Million in 2020 | Beaufort County Now | North Carolina’s largest “economic incentive” program continued to favor the state’s already wealthy counties, according to a new report.

Coronavirus Disease 2019 (COVID-19)

Corporate Welfare Program Continues to Benefit Wealthy Counties, Awards Another $624 Million in 2020

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

HbAD0

Latest Op-Ed & Politics

Dan McLaughlin of National Review Online ponders Vice President Kamala Harris’ approach to her role as the Biden administration’s point person on the Southern border.
Updated forecast confirms historic opportunity to meet the needs of North Carolina communities and ensure a shared recovery from the pandemic
Helen Raleigh writes at National Review Online about an aspect of “clean” energy that its advocates try to hide.
One customer caused the major internet outage that made several well-known websites crash earlier this week, according to the cloud service at the root of the problem.
Many people have resisted getting what has been described as "The Vaccine Shot".
Emily Brooks of the Washington Examiner highlights a new national Republican effort to promote South Carolina’s Sen. Tim Scott.
Governor Roy Cooper signed the following bills into law today: Senate Bill 248 & 2 others
We will offer this allotment of three with more to come; some old, most new, but all quite informative, and, moreover, necessary to understanding that in North Carolina, there is a wiser path to govern ourselves and our People.

HbAD1

The State Board of Elections invites public comment on an amendment to a permanent rule related to the arrangement of official ballots.
The N.C. House passed a bill by a vote of 100-5 on Wednesday to exempt military retirement pay from state income taxes.
Today Governor Roy Cooper announced that he signed an Executive Order to extend a variety of measures currently in place to respond to the COVID-19 Pandemic until July 30.
According to a new study, a microscopic freshwater animal known as a “bdelloid rotifer” or “wheel animalcule,” has survived after being frozen for 24,000 years in Siberian permafrost.
State Auditor Beth Wood’s office found that Shelton Jeffries, the former superintendent of Nash County Public Schools, violated his contract and district procedures by ringing up $45,690 in questionable expenses during his three-plus years at the helm.
The Senators urged Secretary Fudge to reconsider this policy, and instead focus her efforts on housing for more Americans in need during the ongoing pandemic.
Read and decide for yourself if you believe this story

HbAD2

North Carolina state Senator Jeff Jackson, aka Cal Jr., is working his way across the state as part of his “100-Day, 100 County” tour
The state Senate’s main education committee has endorsed a bill that would penalize N.C. school systems for late payments to charter schools.
This may seem hyperbolic to some people, but there is plenty of evidence to confirm that the globalist agenda has prioritized children as its target to change public perception on a whole range of social and economic issues
Governor Roy Cooper signed the following bills into law today: Senate Bill 135 & 241

HbAD3

 
Back to Top