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by gruez
40 days ago
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>But then the reality sets in. The massive property and corporate income tax breaks and subsidies and land use variances that were all negotiated as part of the deal come to roost. The jobs aren't upwardly mobile jobs. The income tax revenue isn't enough to offset all the other breaks. Then it sounds like the issue is subsidized datacenters, and the solution is simple: don't subsidize them. |
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These datacenters are like that, but taken even further because they're attached to an industry used to ridiculous tax breaks or lack of taxation in the first place, constant investor capital, and continuous rapid growth. Software production and digital infrastructure have grown up in a wildly different environment from traditional retail and shipping logistics, but they're taking the most successful (and harmful) expansion tactics from retail and shipping.
Unless you can kill subsidies outright for anything connected to a national or international entity and provide enough specifics to prevent them from hiding behind shell companies then it's a losing battle to say "don't subsidize them." They'll either force you to pay for them or they'll move somewhere that will, and those with a poor understanding of the situation will complain for years that everyone lost out on a "big opportunity" by refusing to pay for their own predation. That complaining can echo into local politics for years afterwards and affect the outcome of various policies, either by denials out of spite or misplaced regret over the previous big project, or by politicians being voted out because of their opposition to a Wal-Mart or such being built via extensive subsidies and an agreement to collect no taxes for ten years.