North Carolina

The Charlotte Observer has a decent analysis on a tax incentive program for Google and some of the relevant problems. Here's part of it:

The cost of the incentives has renewed questions about the fairness of tax advantages offered to new industries but not to businesses that have been in Caldwell County for generations. The county and the city agreed to forego 30 years' worth of personal property taxes, plus 80 percent of real estate taxes to land the plant. Google won't have to pay sales taxes on electricity, either. The 2006 General Assembly granted that exemption.

Exempting new employers from property taxes may be a surefire way to draw new jobs that otherwise wouldn't exist. But it also means other employers and ordinary citizens bear the burden of paying for such services as police and fire protection, public schools and Medicaid. That is not fair.

But at least in the Lenoir case, the wages -- which are to average around $48,300 annually -- will be far above the local average of about half that much. That's an improvement over the average wages of about $28,000 Dell was reported to offer. The next question is whether Google can find enough trained employees locally. In exchange for the package of tax incentives, Google should make a determined effort to hire and train local workers first.

State and local officials often excuse their willingness to give away taxes by arguing that other states are doing the same or more. That doesn't make it right, but few politicians today are willing to be seen as standing idle while good jobs go elsewhere. This time, at least, they'll come to Caldwell, where they're both needed and welcome.