February 26, 2010
Big Labor Boss Calls For Big Tax Break For Big Business
That happens
more often than some think, but still calls for an explanation.
Here's
the story
from David Johnson, whom the Seattle Times describes as the "executive secretary of the Washington
State Building and Construction Trades Council, a coalition of 15 construction unions across the state".
Our Legislature, however, has the power to help. While our state lawmakers have proposed
several bills this session to create jobs, which we appreciate, we as an industry have focused much of
our efforts on House Bill 3147 and Senate Bill 6789, companion bills that would remove a major barrier
to bringing data-center construction — and thousands of jobs — back to Washington.
The legislation would authorize a temporary sales-tax exemption on the purchase and installation of
computers and energy equipment for new data centers in rural counties. The bills have legislative
support from both parties and from all parts of the state, and data-center builders and owners have
already testified that they would build quickly in Washington if the tax burden were lifted.
Who would benefit from this change? The members of those unions, of course, but probably not
their non-union competitors. And, according to Johnson, these firms: Google, Disney, Apple and
Amazon, none of them small businesses.
Who would lose from the change? Presumably other Washington taxpayers, who would have to
pay a little more to make up for lost revenue. (The change still might be worth
doing. I would have to see the numbers before I could have an informed opinion.)
That explanation is probably sufficient, but, as it happens, there is a second explanation in the
op-ed, which may be even more important to Johnson.
But in November 2007, everything changed. That was when the state attorney general determined
that data centers do not qualify for an existing sales-tax exemption designed to attract business
to rural areas.
Those who follow Washington politics closely will understand exactly what Johnson is implying in
that paragraph; those who don't may need this explanation: The Washington state attorney general
is Rob McKenna, Republican Rob McKenna, almost-certain Republican candidate for governor in 2012 Rob
McKenna.
Democratic party supporter Johnson is blaming McKenna for those lost jobs. Unfairly, since
the attorney general does not make the laws. (McKenna is a fine lawyer, with a
solid reputation for honesty. If he said the law didn't allow that tax break, it almost
certainly doesn't.) The Washington state legislature, which does make the laws, has been
controlled by Democrats for years.
Cross posted at Jim Miller on Politics.
Posted by Jim Miller at February 26, 2010
07:33 AM | Email This
1. Well, you have to hand it to the guy.
Since the legislative and executive branches have belonged to the Unions & Dems for nearly a decade, he has to find the only Republican in sight with any type of political power to blame something on.
I would be interested to know why McKenna made such a determination. Certainly building datacenters in rural areas will bring construction (i.e., union) jobs to the state. But for how long? And once built, how many long-term jobs remain as a result of a datacenter? I don't imagine it takes a lot of personnel to run a datacenter. So maybe the AG figured that a datacenter doesn't actually provide a long-term gain to the economy.
But hey, on the positive side, finally there is a union boss not talking about just forcing the state to pay more money into the unions.
2. The fact is these projects were built on the assumption that the tax exemption was in place. while the AG said no and revenue said no the courts said yes. So we are trying to reinstate what is already there. But at the same time we are running a bill to change the court decision in favor of the state. Makes no sense? Not much does in this session. It pains me to say that labor is right on this one. As stated, that is very rare indeed.It should also be noted that the fiscal note is 0 because if they dont come there is no loss. This is not a tax shift and the existing projects have been a home run in every way for the state and local economys.This is one of the very few bills that will add jobs in the private sector. Repcondotta
3. David Johnson and Rep. Condotta have it right. This legislation would bring much-needed jobs to our state, including a lot of permanent jobs to run the data centers, and a huge economic boost to the rural areas. Eastern Washington already has several data centers and could get many, many more if the legislation passes. And this isn't just some empty gesture. According to the testimony in Olympia, tech companies are lined up to come back to Washington, if only the legislation becomes law.
4. Jim, this also not all about big business. One of the trends in data centers and cloud computing is aggregation -- smaller but heavily data-dependent companies not building their own data centers but leasing portions of facilities. Which is exactly the case with one of the data centers built in Eastern Washington before the ruling that they did not qualify for the exemption. There are at least two companies who build data centers for others who are intersted in our state -- if the legislation passes -- for exactly that purpose.
5. Not a surprise, given
which party is in the pocket of big business...
6. This just is too funny...why don't big business ask the contractors to cut their prices 6.5% the amount of the State portion of the Sales Tax. Then the contractors could tell materials suppliers to cut their prices 3.25% and take a smaller profit margin. Then tell the unions that the labor on the job will work fixed price and must deliver the project within a reduced budget by 3.25% That would mean working an extra 15 minutes a day on the job for each worker.
What we have here is an excellent example of our lack of restraint as a society to spending money on everything we want and not investing in what we should. Government has grown at the rate double and triple inflation. It 'governs' things it should not like the absurd parsing of tax breaks for data centers?!!?! A Government run through the distillation of original intent would be left to creating equal opportunity by not picking winners and losers. Enforcing a moral code laid out in laws that insures a growing dominion (liberty) over all we see while mercifully dealing with criminals with the intent of ensuring society knows that the intent is to restore the nation and not the criminal. Instead government steals enmass under the guise of taxes, creates whole centers of false employment under the guise of laws and regulations 'we need', creates and enforces laws best left to individuals to decide between themselves and most of all is used as a club in the hands of one group to take from all or actually destroy society by redefining the fundamental foundations of a nation. The thin veil of this perversion of government has the words education, jobs, children and health care as its threads meant to repel any light meant to call out the fraud behind the veil.
ENOUGH!
You and me must look only at ourselves for encouraging this behavior of government as a representation of our own hearts. This fall we again have the opportunity to remember what we have forgotten - elect leaders not children. In the meantime it truly is for the children and your job to push government back to its original intent by getting back to your original intent. Steward what you have, your not entitled to a free bus ride, free data centers or free health care because as we know free is the worse value of all-the lowest quality, the slowest, the most life taking because you know you did not earn it and deep inside you hate what is free(stolen from another) in your hands.
7. I'll never support McKenna for Governor. He consistently sides with the State on property rights disputes. He has also waged a legal vendetta against the BIAW, which is really the only coherent, consistent opposition to the ruling Democrat party in this State. The GOP is so pathetic as to not merit any mention in this regard.
Don't be fooled by McKenna - he is the ultimate RINO.