The (Columbia, S.C.) State newspaper has a big cover story today outlining S.C. Gov. Nikki Haley‘s “opposition” to a controversial sales tax incentive for online retail giant Amazon.com. According to The State, Haley does not support the “safe harbor” sales tax breaks that the company is demanding in exchange for bringing 1,300 low-paying jobs to Lexington County, S.C.
Yet while Haley is bad-mouthing the tax breaks (which were negotiated by former S.C. Gov. Mark Sanford), she told lawmakers that she would not veto the legislation that contains them if it reaches her desk.
In other words, this is exactly the same “kabuki dance” that we reported on here at FITS three weeks ago – yet another example of Haley’s malleability (not to mention the circles we run around the rest of the state’s press corps).
(Incidentally, FITS was the first major S.C. media outlet to report on this deal, and the first to report on subsequent problems with the legislation).
A 2005 bill passed by state lawmakers created a “safe harbor” from sales tax collections for out-of-state distributors, but that law recently expired. State officials promised Amazon that the legislation would be resurrected this year, but so far that hasn’t happened.
In fact, the only lawmaker pushing them is S.C. Senate Finance Chairman Hugh Leatherman.
While Haley’s Commerce Department has consistently supported the incentives, she has publicly criticized them.
The $100 million facility would be located at Lexington County’s new 400-acre industrial park – which was built three years ago but has yet to land a corporate recruit. Lexington officials have already approved a fee-in-lieu-of-tax (FILOT) agreement related to the project, but the value of this incentives package has not been disclosed.
Haley’s Tea Party base has rallied against the bill … while many of her longtime Lexington County political allies support it.
We oppose the legislation …
Why? We just don’t think it’s fair to existing businesses that are struggling to make ends meet … plus, we’re generally against any taxpayer-funded efforts to pick winners and losers in the marketplace.
We begrudgingly supported incentives for a Boeing plant in North Charleston in late 2009 – but that was before we discovered that the price tag for the deal was more than twice what Sanford and state lawmakers originally told us. Meanwhile last year we adamantly opposed an incentives deal for developers looking to build a controversial “mega-mall” in Jasper County.
The less that government has to do with economic development, the better …
Accordingly, we hope Haley will do more than just say she opposes this legislation … we hope she will actually oppose it by promising to veto it if it reaches her desk.
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By jim lewis April 1, 2011 at 1:49 am
willie, I am a little concerned with your choice of terms. If your Gypsy Queen is doing a “kabuki dance”, then what are you really saying about her.
I have always been under the impression that “kabuki” was Japanese theatre where only men were allowed to act, dance, etc. In other words, only males can do a “kabuki dance”.
I know your pending book may provide more details of your alleged backseat bouncing with the Gypsy Queen but are we to believe that there may be some King to the Queen?
By ninjapirate April 1, 2011 at 2:36 am
The original deal is crap… but not for any of the reasons you’ll get from the TEA Party or the Policy Council…
Did the people who negotiated this deal not notice that:
1. The kindle is just now beginning to get to the price point where they can give it out free in order to recoup costs on ebook purchases.
2. Amazon is the #1 player in cloud computing.
The people negotiating should have at least probed about a free kindles for students program and it’s a nobrainer to flat out demand cloud computing resources for education/tech startup program.
By curious April 1, 2011 at 3:20 am
Besides philosophical opposition to this practice, won’t it eventually lose its incentive power? As more states dangle more double-standard tax breaks to more business, we’ll have sort of an arms race until the build-up (or tax break down) is meaningless. At what point do states stop rigging or artificially inflating the system?
By Mrs. Ethel Krabitz April 1, 2011 at 5:44 am
People who talk out of both sides of their mouths are just trying to please everyone. That’s not leadership.
By Cooter Brown April 1, 2011 at 6:15 am
Wee dont kneed t’ be subsidizin’ carpet baggers hoo come here t’ exploit our peoples an’ kick up controversie wit thare special treetmint.
Stop taxin’ an’ regulatin’ our own folks outta business an’ bringin in foreigners with all da b.s. dat goes wit it.
Weeze stainin’ on acres of diamonds– we outta bee lookin at how we cna bess make use of the resources we gots here.
I haz nuthin t’ say ’bout da gobiner– stupid iz az stupid does.
By Rylyn April 1, 2011 at 8:07 am
Any tax is a bad tax – Would we not be better off with 1200 jobs? Just saying?? Amazon is going somewhere. It would be nice to have the jobs in South Carolina but I guess our 10% unemployment isn’t bad enough yet. I agree that all businesses should get the tax breaks but lets just go ahead and throw the baby out with the bath water here. If we have 1200 jobs those 1200 people will have money to spend. There is some logic there – I think??
By Justin April 1, 2011 at 8:56 am
Agreed with Rylyn. Instead of worrying about being fair to other businesses, maybe we should lower government spending in order to give ALL businesses in SC a tax cut (or FILOT)…
By stimulus April 1, 2011 at 9:17 am
she is a stupid ugly bitch!
By scmajor April 1, 2011 at 9:47 am
LoL!
You don’t honestly think of your site as a “major media” outlet do you?
You owe me a keyboard.
By horeb April 1, 2011 at 10:45 am
I’m so confused. She opposes this, but will not veto. Wouldn’t this be considered just one more lie? What message does this send to the taxpayers, and the young people who for some odd reason have looked up to her? What message do these lies send to her husband and children? This is a person who is probably in need of nia white belt.
By misstate April 1, 2011 at 11:04 am
yeah justin, who need fire dept, police dept, road infrastructure, garbage collection
lets just end gov’t altogether
By Gillon April 1, 2011 at 11:12 am
So let’s assume that the legislature approves the sales tax incentive despite Haley’s “opposition” to it. She then signs it into law despite “opposing” it. I suppose her next statement would then be: “I opposed the tax incentive before I was for it.” Hmmm. Go figure.
By Just Another Joe April 1, 2011 at 12:16 pm
.Ok, ok. Just how much in sales in SC does Amazon have in a year? Multiply that by 0.07% to come up with a sales tax total. Now what does it cost to maintain 12 unemployed low skill workers and their families in the Midlands of SC. Also how much in sales, property and income taxes would be taken from 1200 unskilled employed workers? I don’t know the numbers, but I do know it is costing allot of dollars just to support 1200 unemployed worker and their families not to mention the lost tax revenues. Interesting that a billion of our tax dollars were put up just to attract Boeing to build a new plant in SC. Will Boeing be paying sales tax on planes assembled in SC.
By SALT (state and local tax) man April 1, 2011 at 12:35 pm
Amazon trolls the country for states willing to take the “jobs” bait in exchange for “no tax.”
The Wall Street Journal recently reported the State of Texas’s rejecting this “deal” and Amazon’s departure from that state. It wasn’t worth the money to Texans. Bravo!
Amazon is in very high-stakes litigation in New York State, which is now trying to tax Amazon’s out-of-state sales. Bravo!
Amazon’s “business model” is built on this “free tax” sleight-of-hand championed by Sen. Leatherman, and Amazon itself acknowledges in the footnotes to its Annual Financial Statements that this “threat” from the various states is a serious challenge to Amazon’s “business model.” Bravo!
As a small businessman, I’d like a “business model” where I could skirt sales taxes, too.
– SALT (state and local tax) man
By Libb April 1, 2011 at 12:35 pm
Let’s keep in mind that the USINPAC was(and still is) one of the Kabuki Queen’s biggest donors. If you have any doubts about her “real” agenda consider the following comment from a recent article on USINPAC’s mission:
“The India Caucus mission statement (20) claims that they are interested in the “facilitation of trade and commerce with India… visas,… and the promotion of Indian culture in the United States.” Their true agenda is to thwart all attempts by labor advocacy groups to limit the offshoring of jobs to India, provide unlimited and unregulated H-1B and L-1 visas so that Indians can wreak labor arbitrage in the United States, and to drive a wedge between our country and Pakistan. Adding insult to injury this betrayal of trust is subsidized at taxpayers’ expense.”
Nikki’s agenda ain’t got jack to do w/ reforming SC.
By Cash April 1, 2011 at 12:49 pm
The Punjab is a province of Pakistan. That is why people from Punjab do not look like other Indian people. Ever notice? Amritsar, which her family moved here from, is a little over an hour from Islamabad. And no, do not be naive, her agenda ghas nothing to do with reforming our state.
By Scooter April 1, 2011 at 3:23 pm
Either she is for or against the tax break. If she openly states she opposes the lesser tax level, but says she will sign a bill that supports it, if it comes to her, is hog wash. That will buy her praise from short minded people, but this will not work with those who have functioning brains and a memory. Plus, (this is the big point) this is dirty politics. I saw the headlines today, and thought “oh boy, she gets the need for the rich and big business to pay taxes, like the rest of us do.” But, no. Reading further, she is just talking out of both sides of her mouth. Shame on those tactics.
By Scooter April 1, 2011 at 3:29 pm
Jim Lewis, you are a cool dude. For me, I never, ever thought she was attractive. Never saw the reason all those men were crazy for her. But, maybe, you hold the key. Hoot.
By Rijiv April 1, 2011 at 6:11 pm
What is this? The OWB is suggesting Nikki may possess some man meat?
By Manmeet April 1, 2011 at 6:11 pm
Leave me out of this.
By Gupta April 1, 2011 at 6:13 pm
As the song in America goes………”Mama’s got a squeeze box…..”
By Maxwell April 1, 2011 at 6:17 pm
But, is there a box? Sic……. you sick puppy!!!!!
By Justin April 1, 2011 at 11:35 pm
Misstate, I’m not even going to justify your stupidity with a response… oh shit.
By costcutter April 2, 2011 at 3:29 am
Wait a minute! Bob Ferrell (WSA) hired Her Excellency for her connections. How are those connections working out Johnny and Randy? LMC hired Her excellency for her connections and she didn’t even show up for work. She was for the Amazon deal before she was against it. Now if the legislature can give her political cover she won’t veto it. What about it Tea Party? She is weaving a web of deceit and it will catch up with her.
By Cash April 2, 2011 at 9:19 am
Where is her husband. Has he been locked in the mansion dungeon? Has he moved out…back to his parents home in H. Head? Back to 340 Governors Grant in Lexington? He has disappeared. I keep hearing divorce rumors. Anybody know?
By Manmeet April 2, 2011 at 9:30 am
Still trying to get that rash of his manhood.
By costcutter April 2, 2011 at 11:10 am
He is trying to get Her Excellency to expedite his promotion to Captain after all she is the Commander in Chief of the SCNG. We need this promotion in the name of diversity. Perhaps they will celebrate his promotion in North Carolina.
By Manmeet April 2, 2011 at 2:53 pm
Doesn’t seem right? Undo influence? Unjust actions? Unbelievable abuse of power? Does that sound about right?
By Trevor Bauknight April 5, 2011 at 10:50 am
By the way, I don’t think I’d keep referring to FITS as a “major media outlet”…people might laugh.