Are tax incentives to keep companies in New Jersey good business?
EDISON - New Jersey lawmakers have approved another massive pile of tax breaks for a company promising to help revitalize the state's economy.
This week, Holtec Industries joined Revel, American Dream and the Philadelphia 76ers as companies that got millions of dollars in incentives to either stay or come to New Jersey. So is it good business, or corporate welfare?
The Christie administration has been adamant about extending a hand to big business if it means cutting into an unemployment rate that for years has lagged behind the national average.
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It has been a bipartisan effort. Democrats in the Legislature have approved multiple bills that allow corporate subsidies in the form of tax breaks, incentives for development in urban areas, and rewards for jobs in popular fields like high tech and green technology industries.
But opponents are quick to point out some of the biggest deals have been busts.
The Revel casino deal was worth more than $260 million and so far owners have filed for bankruptcy twice and put the property up for sale. Plus, they worry the state gives the money away without enough strings attached, like requiring them to hire local employees and stay in the state for longer periods of time.
Holtec will also get $260 million in incentives over 10 years to move nearly 400 jobs to Camden.
New Jersey Policy Perspective says that works out to more than $650,000 in tax breaks per job.