Jay Evensen
  • Front Page
  • Opinions
  • Second Thoughts
  • Portfolio
  • Awards
  • About

Facebook data center deal was bad for taxpayers

9/14/2016

1 Comment

 
Picture
Maybe this means Utah has matured. You should hope so.

New Mexico won the Facebook data center sweepstakes. Good for the folks there. Hope they enjoy the 50 permanent jobs they get in exchange for giving up all property taxes on the project for the next 30 years in addition to $10 million from the state’s economic development fund, as the Deseret News reported.
This isn’t sour grapes; not by a long shot. It is, however, a pat on the back to the few elected officials in Utah, such as Salt Lake County Mayor Ben McAdams, who made the offer to lure Facebook a matter of public debate, and to a system here that gives a variety of taxing entities, including school districts, a say in the matter.

The state and West Jordan wanted to give Facebook approximately $250 million in tax breaks over 20 years. The State Board of Education and the Jordan School District objected. That shouldn’t be a surprise, given how schools in this state struggle to educate large families with limited funds.

Give away property taxes and you give away money schools could use to build new classrooms or fix old ones. This isn’t a difficult equation.

In the face of all the objections, Facebook fled to the Land of Enchantment. But don’t cry. Instead, consider these two lessons:

The first is that people in Utah want taxes kept as low as possible. A recently released survey by the Utah Foundation showed the tax burden has been dropping here, but that doesn’t matter. People still want to pay less. The foundation reported that, of those who responded to its Utah Priorities Project survey, “Three-quarters of these respondents mentioned taxes, most stating that they were too high.”

How do we keep taxes low without hurting services? Not by giving money away.

Four years ago, a New York Times investigation found that states, counties and cities nationwide give away a combined $80 billion yearly in incentives to companies, or $696 per family. You can be sure the total has grown since then. Sooner or later, that adds up to real money, and it means local governments have to make up the difference somehow.

Generally, politicians argue the incentives are well spent, and that they lure more investments that ripple through local economies. Studies have shown this isn’t often the case. The Institute of Taxation and Economic Policy said “the evidence suggests that tax incentives are of little benefit to the states and localities that offer them, and that they are actually a drag on national economic growth.”

They also are unfair to the folks who already started businesses here from scratch and who didn’t get any tax breaks. That brings us to the second lesson.

Utah, and the Wasatch Front in particular, is growing just fine on its own. A recent story by techcrunch.com found that “Utah has seen the most economic growth in the nation for the past two years, with tech leading the charge.”

It also notes the proliferation of so-called “unicorns,” or startup companies now worth at least $1 billion, along Utah’s Silicone Slopes, as well as the many “soonicorns,” or companies soon to be worth $1 billion.

Should these businesses be forced to pay for companies like Facebook that some people feel we just have to have?

That’s not how mature, self-assured, confident and growing communities act. Instead, they do as the Washington-based Tax Foundation has suggested, which is to “broaden the tax base and lower the tax rate.” That way, all businesses benefit.

Unfortunately, not all public officials are so mature. The whole Facebook negotiating process, known cryptically as Project Discus, was a big secret until the Deseret News ferreted it out. Some public officials here are so taken by the bright lights and big promises of large corporations that they view the messy democratic process as an impediment.
​
They forget that tax incentives are supposed to provide things the private market won’t do on its own. If they remembered that, they would grant few such exemptions, indeed.
1 Comment
real indian facebook likes link
3/1/2017 02:30:28 am

Thank you a bunch for sharing this with all of us you actually realize what you are talking about! Bookmarked. Please also seek advice from my site =). We could have a hyperlink change contract between us!

Reply

Your comment will be posted after it is approved.


Leave a Reply.

    RSS Feed

    Search this site


    Like what you read here?

      Please subscribe below, and we'll let you know when there is a new opinion.

    Enter your email address:

    Delivered by FeedBurner

    Picture

    The author

    Jay Evensen is the Opinion Editor of the Deseret News. He has more than 40 years experience as a reporter, editor and editorial writer in Oklahoma, New York City, Las Vegas and Salt Lake City. He also has been an adjunct journalism professor at Brigham Young and Weber State universities.

    Archives

    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012

    Categories

    All
    Campaign 2012
    Congress
    Crime
    Culture
    Iran
    Oil And Gas
    Poverty
    Steroids
    Taxes
    Utah
    Washington
    World Events
    World Events

    Links

    Deseret News
    Newslink
    Marianne Evensen's blog

Powered by Create your own unique website with customizable templates.
Photos from jamesjoel, DOWN ESPAÑA, garethjmsaunders, University of Salford, Adam Jones, Ph.D. - Global Photo Archive, marcoverch, See-ming Lee 李思明 SML, edgarzunigajr, Theo K, ActuaLitté, Mike Licht, NotionsCapital.com, Backbone Campaign, OIST (Okinawa Institute of Science and Technology), bradleygee, @sage_solar, sianiweston, makelessnoise, COD Newsroom, philozopher, Congressman George Miller, Jordi Bernabeu, edgarzunigajr, National Assembly For Wales / Cynulliad Cymru, simpleinsomnia, Mike Bonitz, Becker1999, manhhai, BiblioArchives / LibraryArchives, amira_a, Ken Lund, Bread for the World, r.nial.bradshaw, DearEdward, sinisterbluebox, denebola2025, thedoc31, ** RCB **, IQRemix, sandiegoduiattorney, Rob.Bertholf, Seluryar, Ben Sutherland, O.S. Fisher, Tony Webster, www.rubenholthuijsen.nl, Zachi Evenor, jonnwilliams, Lion Multimedia Production U.S.A., penjelly, jillccarlson, ADAM TAS IMAGES, UNMEER, DonkeyHotey, USDAgov, The Prime Minister's Office, Maicon Garcia, CountyLemonade, familymwr, Muffet, DonkeyHotey, tedeytan, KristineL761, penjelly, Leap Kye, sully213, NLNY, frankieleon, haven't the slightest, ljlandre, jalbertbowdenii, Rvs1966, Marion Doss, Vassilis Online, Dan Bock, Prestonbot, Frontierofficial, L. Bartha, educators.co.uk, Kelly Hunter, lindsayloveshermac, Michael.Jolley, dw_ross, Janitors, KAZVorpal, combusean, wuestenigel, apardavila, BodyWorn, MDGovpics, MHS Touchdown Club, JeepersMedia, Elvert Barnes, fred_v, CountyLemonade, mitchell haindfield, qbac07, David Holt London, Hoshi_sae, DonkeyHotey, aaronrhawkins, Ruth and Dave, CountyLemonade, Akademija Oxford, NASA Goddard Photo and Video, Chimpanz APe, huskyte77, GotCredit, sandiegoduiattorney, pacificpelican, streetsensedc, ell brown, Aaron Volkening, rgserapio, Asian Development Bank, paularps, ThoseGuys119, USDAgov, SIM USA, gnrklk, kthypryn, Zeitfixierer, vwcampin, regan76, frankieleon, Robert Couse-Baker, JoeInSouthernCA, SounderBruce, ThoseGuys119, CDC Global Health, Gage Skidmore, bunnicula, Fire At Will [Photography], Alexandre Prévot, Anth0ny Gale, vastateparksstaff, raphael.chekroun, Gerry Dincher, halseike, Prayitno / Thank you for (12 millions +) view, Gage Skidmore, infomatique, omarsalvatierragracida, Jerk Alert Productions, DonkeyHotey, Österreichisches Außenministerium, Photocapy, USDAgov, Taymaz Valley, jencu, Peter Krantz, WayShare, Mike Licht, NotionsCapital.com, gruntzooki, CountyLemonade, makelessnoise, Denise Cross Photography, Roadgeek Adam, Tony Webster, amy.gizienski, faungg's photo, makelessnoise, FolsomNatural, Loimere, free pictures of money, Exile on Ontario St, EvinDC, ell brown, kamirao, coachphatty, Keith Allison, Raido Kaldma, avrene, Shutterbug Fotos, Elvert Barnes, Andrew Feinberg, Tony Webster, danxoneil, GrandGeneralStormCommando, MShades, Joe Frazier Photo, Kurdishstruggle, Omranic, SounderBruce, Mike Morbeck, Got Credit, Scudamore's Punting Company, wuestenigel, r.nial.bradshaw, NIAID, torbakhopper, 81disasters, gaobo, John Haro, Metro Atlanta Transit Productions, foundin_a_attic, Sten Dueland, tedeytan, CarbonNYC [in SF!], Mike Licht, NotionsCapital.com, marcn, pburka, BBurchell Photography, wbaiv, heyexit, Phillie Casablanca, Neil T, LendingMemo, Elsie esq., Mike Licht, NotionsCapital.com, n4rwhals, WalterPro4755, railsr4me, JLaw45, Janitors, USDAgov, MarkDoliner, educators.co.uk, wuestenigel, Franco Folini, JeanneMenjoulet&Cie, WayShare, Gamma Man, ninara, Bob Linsdell, H.KoPP, Vegar S Hansen Photography, denebola2025, Aircaft @ Gloucestershire Airport By James, Talusss, LaBellaVida, wwarby, easysentri, evelynquek, Ken Lund, rdmsf, North Charleston, t--h--s, denisbin, stcyshn, Tim Evanson, KAZVorpal, jurvetson, Simon_sees, thisisbossi, Photographing Travis, Phil Roeder, rich701, BPPrice, Kadano, quinnums, MoneyBlogNewz, wickenden, Lost Albatross, Bernd Thaller, Dave Snowden, CountyLemonade, au_ears, annikaleigh, magerleagues, MICOLO J Thanx 4 725k+ views, DonkeyHotey, progre, frankieleon, quinn.anya, Ryan Hallock, jsnsndr, abominable_eagle, Alan Cleaver, aflcio, CDC Global Health, NASA Goddard Photo and Video, jellygator, Jason M Parrish, USDAgov, Mystery in the mail, CJS*64 "Man with a camera", BenDibble, Joybot, JoeInSouthernCA, Pawel Maryanov, kennethkonica, mitchell haindfield, USDAgov, stevebott, Tyler Merbler, NCDOTcommunications, Exile on Ontario St, CBP Photography, jboe2009, WWYD?, liveoncelivewild, vaxomatic, Hunky Punk, tedeytan, GotCredit, Find Your Feet, Fibonacci Blue, Nicholas_T, Sergey Galyonkin, shock264, Georgie Pauwels, EU Humanitarian Aid and Civil Protection, adifferentbrian, Seluryar, Riik@mctr, Andrew Moura, Michael.Jolley, kellybdc, inkknife_2000 (7.5 million views +), JeepersMedia, TheTruthAbout, Anton V. Larionov, HloomHloom, surreynews, {Guerrilla Futures | Jason Tester}, Secretary of Defense, The All-Nite Images, FootMassagez, You're In My Light (jerrysEYES), BLMOregon, Achilli Family | Journeys, Gerry Dincher, Ken Lund, Triple-green, yourbestdigs, Richard Elzey, Prestonbot, automobileitalia, Fora do Eixo, mary_gaston22, bk2000, AutrementDit Toronto., Elvert Barnes, dualdflipflop, mikemacmarketing, Hoshi_sae, torbakhopper, eburniche3, Mike Licht, NotionsCapital.com, Abeeeer, Rob.Bertholf, Don Hankins, dannielleblumenthal-thinkbrandfirst, USDAgov, wuestenigel, Michael.Jolley, xiquinhosilva, Images_of_Money, OregonDOT, [email protected], gregfriese, SounderBruce, Kevin Johnston, Imagens Evangélicas, loop_oh, Magic Robot, funktionhouse, Gage Skidmore, Yosuke WATANABE, Mark Scott Johnson, F43r1x, ljlphotography, dsearls, David Holt London, ER24 EMS (Pty) Ltd., Images_of_Money, roberthuffstutter, monkeyz_uncle, zemistor, fred_v, DonkeyHotey, Obama-Biden Transition Project, CedarBendDrive, nestor galina, brianholsclaw, ryochiji, thisisbossi, Bright Meadow, richard winchell, Svadilfari, Edward M Johnson, NavaInstigator>>>, VarsityLife, ourbethlehem, Mr. T in DC, mwanasimba, Franco Folini, qnr, Dougtone, LightinkLibrarian, Obama-Biden Transition Project, The Official CTBTO Photostream, AstroSamantha, MoreSatisfyingPhotos.com, The Shopping Sherpa, The National Guard, craigdietrich, kamshots, ewan traveler, World Can't Wait, Gila Forest, kaffeeringe, jgurbisz, gruntzooki, Supermac1961, thievingjoker, Rod Waddington, PlayfulLibrarian, Philip Taylor PT, AlicePopkorn, Raido Kaldma, dan taylor, Cannabis Culture, surreynews, cliff1066™, Lars Plougmann, ANZ Cluster Munition Coalition, Tracy O, www.davidbaxendale.com, Rob Barrett Photography, BuzzFarmers, Political Graveyard, ojbyrne, US Mission Geneva, inkknife_2000, ubiquit23, Dan Bock, irrezolut, Frankie Roberto, Abode of Chaos, KOMUnews, John Pavelka, ElectronicFrontierFoundation, DonkeyHotey, carlos.a.martinez, pnoeric, ARTS, ubiquit23, Ken Lund, Tony Fischer Photography, brewbooks, || UggBoy♥UggGirl || PHOTO || WORLD || TRAVEL ||, blackplastic, cristee12, Shan213, OPEN Sports, Korean Resource Center 민족학교, cocoate.com, karola riegler photography, 4nitsirk, gnuckx, citizenactionny, rezsox, Jeffrey Beall, david_shane, Mrs. Gemstone, Erik Daniel Drost, stockicide, kadluba, joaquinuy, quinn.anya, ReneS, StockMonkeys.com, loop_oh, Steve Tolcher, Iqbal Osman1, kiwanja, rawmustard, Anthony J, El Bibliomata, International Information Program (IIP), Alex McClung, danielmoyle, "G" jewels g is for grandma, slgckgc, Images_of_Money, fivedollarones, x1klima, Gabriel GM, redjar, andertoons, gvgoebel, .Larry Page, Mr. T in DC, chintanamin, KatVitulano Photos, Ken Lund, adactio, shroncin, RobotSkirts, jeffschuler, VinothChandar, Joybot, neurollero, erasergirl, Matías Garabedian, viviandnguyen_, Digitale Gesellschaft, markhillary, mkphotonet, jgBeachcomber, jimbowen0306, Franco Folini, dno1967b, jurvetson, MargaretNapier, Elvert Barnes, muddum27, [email protected], Frontierofficial, dsearls, Shamanic Shift, Andrew Feinberg, Prayitno/ more than 2 millions views: thank you!, playerx, FSonne-pennstate73, The Daring Librarian, Vicky Hugheston, thenestor, Dusan Simonovic, David Reber's Hammer Photography, Justin A. Wilcox, Hollywood_PR, AR McLin, BrownGuacamole, Gage Skidmore, zache, Medill DC, wheat_in_your_hair, patricialow, Matt McGee, Bill Stanley, jerekeys, cletch, 6SN7, killrbeez, شبكة برق | B.R.Q, colros, Eric Kilby, kenteegardin, Mike Licht, NotionsCapital.com, Erik Daniel Drost, Edward Dalmulder, chris friese, simone.brunozzi, Daquella manera, stevebott, stevendepolo, DFID - UK Department for International Development, justinmatthew21, a.drian, cudmore, Extra Ketchup, wbaiv, Loren Javier, swanksalot, CountyLemonade, indigoprime, Bryn Pinzgauer, Paul Robertson, Gruenemann, r.nial.bradshaw, Sam Beebe, Ecotrust, Fibonacci Blue, .jocelyn., RESchroeder, MoneyBlogNewz, matze_ott, swskeptic, peterolthof, Charleston's TheDigitel, Tony Webster, Themeplus, sDanOoO, CountyLemonade, Our Dream Photography (Personal), anitakhart, Waiting For The Word, Matt-Zimmerman, Dougtone