Who Says Cutting Taxes Can’t Help

Among the DFL’s “Happy To Pay For A Better Minnesota”-chanting clacque, you rarely see much sympathy for tax cuts; suffice to say that once Obamacare kicks in, we won’t see any for a long, long time.

But when it comes time to try to save jobs, suddenly, even the hardest-core DFLers get religion; Governor Pawlenty just signed a series of tax exemptions intended to try to keep the Saint Paul Ford plant open.  The plant is scheduled to close next year; the law would incent Ford to retrofit the very old plant to build vehicles other than the Ranger pickup.

St. Paul Mayor Chris Coleman, who’s often been at odds with Gov. Tim Pawlenty over cuts in state aid to cities, applauded the governor for signing the bill later this morning.

Said the mayor:

“This legislation gives Saint Paul the means to do our part in protecting the workers at the Ford Plant. As Ford continues to look at their options, this bill stands as evidence that the City of Saint Paul, and its world class workforce, are ready to work with them in any way we can to keep this plant open.”

That’s right, Mayor Coleman.  Just imagine how many businesses would come to Saint Paul if all our taxes were lower!

Les Lucht, a good friend and Ford employee, writes at Ademocracy to thank everyone involved:

Little background on the plant is over 90 years old, The machines are over 25 to 30 years old.
It would cost about 1 billion to clean up the site. And the City and State will lose more than 90 millions dollars in taxes. Beside other business nearby will close additional taxes loss of one to two millions in loss of taxes. Plus another 750 unemployed employees, loss of more tax dollars.

Southern state have got federal aid to get job there. mainly auto companies. And to keep them.

I’m opposed to state subsidies on principle, and a tax cut that Peter gets but Paul doesn’t is pretty much a selective subsidy.  But Lucht is right; the market for big auto plants is like the market for stadiums; governments at all levels have skewed the market by being in the game so very deeply.

3 thoughts on “Who Says Cutting Taxes Can’t Help

  1. One thing you neglected to consider, Mitch, in the willingness of the DFL to approve those tax cuts: those are UNION jobs at the Ford plant.

    Do you think the DFL would have leaped so quickly or forcefully if it were Lockheed-Martin threatening to close down?

  2. Kind of like the hypocrisy of the Hollywood liberals proclaiming the righteousness of paying more taxes and then deciding which state they will film their movies in based on how sweet of a tax break – excuse me, “incentive” – they can get from that state.

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