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THE IOWA SPAM SUBSIDY
March 26, 2008
Why does Iowa have the highest corporate income tax rate in the country? Why do we have terrible property taxes? Why our our income tax rates so high?
So we can give $6 million to Hormel!
From the Austin, MN Post-Bulletin:
Hormel Foods Corp. will get tax benefits totaling more than $6 million from the state of Iowa for its future plant in Dubuque.The Austin-based Hormel Foods received one of 11 economic-stimulus awards Thursday from Iowa's Economic Development Board and the Iowa Department of Economic Development.
Hormel - high-tech jobs for the 21st century!
The Iowa news release says Hormel's capital investment with the project totals $91 million and is expected to create 196 jobs.Hormel's release from earlier this year, however, listed the plant's value at $89 million, with 180 jobs to be created.
Given the Department of Economic Development's history of inflating "job creation" stats, we'll defer to the welfare recipient's numbers. The subsidy works out to $33,333 per "job," paid for by your taxes.
In fact, Iowa approved $516 million in corporate welfare tax incentives in 2007. The entire Iowa corporation income tax generated only $320.3 million in revenue in the 12 months ending last October.
It's too much to expect Mr. Tramontina to call an honest press conference on economic development.
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