Corbett's Plan: 'Corporate Welfare' or Jobs Stimulus?
Largest taxpayer-supported incentives package in state history
Governor Tom Corbett spoke at a Harrisburg news conference this week to present “the largest taxpayer-paid financial incentives project in Pennsylvania history," the Associated Press reports.
The move comes as Netherlands-based Royal Dutch Shell PLC has inked a preliminary deal to build a large refinery about 30 miles northwest of Pittsburgh.
Watch the video to see Gov. Corbett talk about the proposed Shell refinery in March.
The proposed tax credit would take effect in 2017 and be worth up to $66 million a year to the energy company for 25 years.
Characterized by Corbett as an effort to "invest in a new industrial revolution," the plan's supporters say it would create as many as 17,000 "spin-off jobs," in addition to the 400 jobs at the Shell site and 10,000 temporary construction jobs, the Philadelphia Inquirer reports.
Some critics, however, have asked why Corbett is supporting a $1.7 billion tax break to the energy industry at the expense of taxpayers.
"While Gov. Corbett asks us to keep ponying up our hard earned tax dollars, and to tighten our belts at home, the Governor is proposing to give Shell Oil—who enjoyed $31 billion in profits last year alone—a massive taxpayer handout of nearly $2 billion," wrote David Masur, director of PennEnvironment, in an email to that group's supporters on Tuesday.
Supporters of the Corbett plan believe it will “lure an integrated petrochemical industry to a state wracked by the flight of manufacturing jobs in the recent decades,” writes the AP's Matt Levy.
Corbett himself rejected the notion that his plan constituted "giving money" to the energy industry, instead characterizing it as a way to bring jobs to the state.
The governor is believed to be pushing for a vote on the package before the end of the current legislative session at the end of the month.
Karl
9:59 am on Thursday, June 21, 2012
Let's compare Obama and Corbett for a second.
Obama: The Obama administration distributed $9 billion in economic “stimulus” funds to solar and wind projects in 2009-11 that created, as the end result, 910 “direct” jobs -- annual operation and maintenance positions -- meaning that it cost about $9.8 million to establish each of those long-term jobs.
Corbett: The proposed tax credit would take effect in 2017 and be worth up to $66 million a year to the energy company for 25 years.
Characterized by Corbett as an effort to "invest in a new industrial revolution," the plan's supporters say it would create as many as 17,000 "spin-off jobs," in addition to the 400 jobs at the Shell site and 10,000 temporary construction jobs, the Philadelphia Inquirer reports.
I'd say Corbett wins the ROI agrument by a country mile.
Mike Shortall
9:44 am on Friday, June 22, 2012
Hard to argue with the "direct approach" of luring a REAL job creator, as opposed to simply throwing mountains of cash at the Economy and hoping something sticks and grows. With the incredible amount of natural gas sitting under PA, it's a natural fit!
From The Inquirer piece:
"The Shell plant, to be built in Beaver County, would turn by-products of the Marcellus Shale natural gas drilling into ethylene - which is used in plastic products ranging from tires and shoe soles to carpet backing and soft-drink bottles. The plant is projected to create 10,000 temporary construction jobs and employ 400 full-time workers."
We need the jobs, and jobs generate spending and tax revenues that will help to offset the Shell tax credit. Jobs, jobs, jobs .... If you cannot entice Shell to come here, they will build it in Ohio or West Virginia or Maryland ....
This is the kind of economic leadership severely lacking in The White House!
Karl
9:59 am on Thursday, June 21, 2012
and my source: http://cnsnews.com/news/article/9-billion-stimulus-solar-wind-projects-made-910-final-jobs-98-million-job
Robert Willi
10:27 pm on Thursday, June 21, 2012
I get it now! The Oil Companies paid for his Campaign so they get the breaks while the Tax payers get the screwed! The drilling for Natural gas has already damaged water ways and land, but you don't want to tax anyone who you owe your Governorship too. Not good for your re-election when you need their money again!
brian
7:32 am on Friday, June 22, 2012
the reason why you cant compare obama to corbett is because obama shouldnt be playing around with stimulus monies. the feds need to stay out of it and give the states a chance to do with it. also, i heard that there were tens of billions of bucks that were allocated to "putting america to work" and wasnt utilized. where is that money?