seb146 wrote:I also understand that corporations ask for grants, subsidies, and tax breaks from the federal government for things.
Very seldom does a corporation get any tax breaks from the federal government. Too much legislation, public hearings and such necessary to special tax rates.
Grants and subsidies are also very difficult to obtain at the federal level unless the company is participating in a program like alternative fuels, solar power, etc.
It is practically impossible to get a specific federal level assistance for a company for building a new factory.
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The biggest tax breaks that companies look for and receive come on the local level in the form of reduced property taxes and sales taxes. Heck, Walmart is likely the biggest recipient of that type of tax break. They routinely ask for, and receive, a 10-15 year exemption from local (city, county, school district) property taxes whenever they build a new store. And if the original tax reductions are not renewed after 10 or 15 years, they frequently close that store and open a new one just across the city limits in a town which will give them that tax break.
In Texas, where a single family home valued at $200,000 can expect to pay near $15,000-20,000 per year in property taxes, Walmart can save enough in five years with a 90% reduced tax bill to pay for building the store. So basically one 10 year tax break can pay for building that store, and most of the cost of building a replacement in the neighboring town.
Another tax 'break' that companies seek when building a new factory is an exemption from unemployment taxes. Basically the state guarantee's unemployment benefits for the employees. Makes it easier to get unemployment because the company doesn't waste time/ money fighting unemployment claims. They have no financial stake in the former employee receiving unemployment.
