I was reading through some of my past posts and reread that IBM will be receiving $22 million of taxpayer money in their deal to open a new facility in Dubuque.
At a time when Governor is calling for a 6.5% cut in government programs and Democratic Legislators have suggested even deeper cuts, the State of Iowa is continuing to hand out taxpayer money. It seems that in a year where the budget is extremely tight that we wouldn't be handing out millions to companies like IBM.
The Register reported last month that tax breaks are bleeding state revenues dry.
Hundreds of millions of dollars are spent each year on tax incentives and grants for Iowa’s businesses or residents, some of which are depriving the state of revenue, tax reform advocates say.Unfortunately, the money given to IBM is just another example of the state giving our taxpayer money to just a handful of large companies instead of using it to make Iowa a better state for everyone to live in.
And legislative leaders - who acknowledge they are facing the greatest financial squeeze since the 1980s farm crisis - say it's time to evaluate and possibly chop some of the incentives.