Sunday, April 17, 2005


Living Wage for Job Creation Tax Credit

You may have seen the debate over the last couple weeks about a proposal made in late March by Mayor Charlie Luken. The proposal would change the procedure for companies requesting a tax credit for creating jobs in Cincinnati. After some members of council (Smitherman and Reece) publicly criticized the application of Northlich for a tax break for creating 25 new jobs, the company pulled it's request. This prompted Luken to propose that any company that created 10 jobs in the city, and applied for a tax credit would get it.

I didn't support that, and still have some questions about the reduction of income for the city (heck, why not just get rid of city income tax, you'd create a lot more jobs in the city). But if they are going to do it, I like the amendment that David Pepper proposed at the recent finance committee meeting. The proposal would only provide the tax credit to those companies providing 10 or more new jobs that meet the living wage ordinance in the city. This makes a lot of sense to me. It allows the companies providing quality jobs to have a reason to locate and grow here. But it wouldn't give benefits to companies like Wendy's/Wal-mart who provide very low paying jobs.

I assume Andrew Warner (Green Party Candidate for Council, blog here) would support this, he specifically made mention to this on his blog. I don't agree with all of his platform (I probably lean a little more pro-business), but we're definitely in agreement on this specific topic.

Here goes Joe again! He says: "It allows the companies providing quality jobs to have a reason to locate and grow here. But it wouldn't give benefits to companies like Wendy's/Wal-mart who provide very low paying jobs."

What do we do with those people that don't qualify for executive positions? Joe doesn't want jobs for these people. In fact, he seems to not even want them in this city. Well if he is successful in discouraging jobs for these people then maybe they will leave Cincinnati. Why does't Joe just send them to concentration camps?

Joe should consider that when he takes his date to dinner he will have to leave the city because he won't have a Wendy's to dine at anymore.
Sour... at least this time your funny.. :) Take my date to Wendy's, that's pretty good.

Anyway, if you would READ the post before you comment, you'd see the protest is not against employers of low wage jobs, it's against providing government tax credits to companies who don't hire folks at a living wage. As a matter of fact, it may encourage MORE companies to hire workers at a Living Wage. It's not about tax credits for executive positions, it's about Governments working to encourage employers to provide a wage that people can live on. If they don't want to pay more, and can't run their business that way, fine, but they shouldn't qualify for a city tax credit.

But it was a funny post this time Sour Kraut! I'm encouraged to see you coming out of your shell a little bit.

Do you really believe that companies are hinging location decisions on these tax credits and then not paying attention to labor costs?

These cities that are giving credits are running scared and the companies are exploiting their fears. Generally, cities are cutting each others throats and the companies, especially the large ones that have the people to reduce the cost of red tape, are loving it. Cities are not able to compete with this manuevering by companies. And cities need to realize their reasons for being and not try to horse trade to keep themselves in business. Cities are like children doing business with a gypsy.

You also need to study the origin of corporations or LLCs and LTDs. They agreed to pay taxes to recieve the protection of limited liability and now they do everything to avoid their responsibility.

As far as the living wage goes, it a stupid attempt to correct something that this society has selfishly allowed to happen. The cities no longer have the impact that they think they have.

Until the workers see what Karl, Friedrich and Vladimir were trying to say, they are going to be exploited and some silly living wage ordinance isn't going to help.

Arise ye workers from your slumbers
Arise ye prisoners of want
For reason in revolt now thunders ...
"Until the workers see ..."

Dorm room socialism! How endearing. I can almost smell the sweet stank of bong water.
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