S.C. Gov. Nikki Haley is welcoming Nephron Pharmaceuticals to South Carolina this week – although her connection with the company’s top brass is raising questions.
According to The (Columbia, S.C.) State newspaper, Nephron is bringing 300 jobs to Cayce, S.C. In exchange for those positions, the firm is receiving an undisclosed amount of taxpayer-funded incentives from state and local governments. Nephron may also be in line to receive preferential treatment from the state’s Department of Health and Human Services (DHHS).
What kind of treatment, you may ask?
Well, the company attempted to get on the state’s preferred drug list for Medicaid prior to Haley’s election – but was unsuccessful in doing so. Wonder if they’ll encounter any resistance now that Haley is in charge of the agency? Prior to founding Nephron, William Kennedy founded a durable medical equipment company called Rotech – a company with a history of shady business dealings.
Why does this matter? Well, just last month Haley flew on a private jet owned by Nephron to attend her controversial fundraiser in Dallas, Texas. The company may have also provided Haley with air travel to meet U.S. Sen. Marco Rubio in Florida last year.
Can anybody say quid pro quo?
Nephron will be locating in the same industrial facility where Amazon.com is building its new distribution center – which raises an interesting dilemma for Haley. Specifically, what is her position on taxpayer-funded incentives these days? She railed against them when it came to Amazon – although she later let those incentives become law without her signature.
Clearly she has no problem doling them out now …
Haley likes to talk about transparency … but when it comes to her special interest joy rides and government-funded incentive deals, she’s been incredibly opaque.
As we reported earlier this week, government-funded incentives are creating a growing tax burden for small businesses and individual taxpayers in South Carolina – i.e. the very constituencies Haley pledged to support during her campaign.
As we’ve stated on numerous occasions, we opposed the Amazon deal – just as we will oppose any effort on the part of government to provide selective, speculative incentives with our tax dollars. We believe government should focus its economic development efforts on broad-based tax relief that stimulates consumer activity and job growth among small businesses – not special interest handouts.
We thought that’s what Haley believed, too … but in addition to doling out these incentives deals like candy, she’s actually going on the warpath against those who oppose them.
UPDATE: Looks like The State newspaper got the numbers wrong. According to the S.C. Department of Commerce, Nephron’s announcement will bring 707 jobs to Lexington County – more than twice what the newspaper projected. The capital investment associated with the deal is estimated at $313 million.
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By Robert October 28, 2011 at 8:58 am
Business as usual at our statehouse…..the beat goes on.
By jimlewis,owb October 28, 2011 at 9:01 am
Do believe that everyone knows that Politicians are going to fuck them up the ass every chance they get. What comes as a surprise is how many of their friends they invite to join them.
By Sam October 28, 2011 at 9:18 am
South Carolina is a money tree. And Nikki Haley will never stop harvesting.
By snodgrass October 28, 2011 at 9:28 am
A question for you FITS:
If you were the governor, how would you get these companies to locate in SC?
I sincerely hope you’ll take the time to respond.
By Sweet Jesus October 28, 2011 at 9:31 am
The Borg Queen is getting more comfortable enjoying her power.
The medical industry is becoming so perverse it’s getting ridiculous. You’ve got the gov’t involved in all aspects and it’s soiling the mechanisms of competition that would keep prices in check.
You’ve got BC&BS et al spreading around dirty money to keep competitors out of the state, drug companies doing to same to get on “approved” lists so they can get gov’t subsidy dollars(as well as flying our glorious leaders around on jets when needed), completing their trifecta of turpitude by using their corrupting influence to weasel out of the taxes established/local small business has been paying for decades.
Let it burn…let it all burn.
By WBR October 28, 2011 at 9:38 am
The “shady” business dealings you refer to came AFTER Mr. Kennedy sold Rotech. You rednecks in this state are always bitching about something, especially if it benefits this God awful place you call a state.
BTW, the Civil War ended a loooooong time ago. Get over it already. And, no, I’m not a Yankee, I grew up in Lexington County.
By wow October 28, 2011 at 9:52 am
It’s all about Jobs, people!
Would you rather Nephron outsource to Mexico or China (like taxpayer bailed-out GM and GE?)
By Eckstrom October 28, 2011 at 9:53 am
Not that I have a dog in this battle:
“A question for you FITS:
If you were the governor, how would you get these companies to locate in SC?”
Let me answer this for Willie, as I’m lying in bed right now examining my fine specimen of a body while surfing porn and waiting for Ms. Payne to call me…(it’s just a matter of time baby, you want me and know it)
Look at the Delaware model of no corporate income tax:
“Over 50% of U.S. publicly-traded corporations and 60% of the Fortune 500 companies are incorporated in that state.”-wiki
It’s very simple, you want to draw companies/capital no matter what? Make it across the board…so both big and small businesses benefit.
Now, do you have any other quesions Snodgrass or may I return to admiring myself?
By AsianSuperfly October 28, 2011 at 10:06 am
Nephron’s CEO is a Carolina graduate. So this isn’t as random (and thus entirely incentive driven) as it would appear.
By snodgrass October 28, 2011 at 10:08 am
“It’s very simple, you want to draw companies/capital no matter what? Make it across the board…so both big and small businesses benefit.”
Well, the “no matter what” part is too open-ended, but otherwise I share your view.
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By Geez October 28, 2011 at 10:30 am
“Eckstrom,” you might want to stick with the porn. Delaware has an 8.7% corporate tax. Those without include Nevada, South Dakota, Texas, Washington, and Wyoming, but they make in up in other ways such as a franchise tax. http://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States
More importantly though, states apportion their corp tax burdens based on various factors such as sales, payroll, and property, so the effect of reducing SC’s sales tax to zero would be muted by other states collecting corp tax for sales in their state and we would likewise be unable to collect from out of state entities that sell in our state. http://en.wikipedia.org/wiki/Formulary_apportionment
I know taxes all seem so simple in your and FITS’ head though.
By Eckstrom October 28, 2011 at 11:05 am
I do like my porn, but take a look at this:
“Thus in the case of Delaware, it has no corporate income tax for companies that are listed as operating in the state, but a substantial tax applies to those that do business outside of the state.”-wiki
Would you like to retract or should we go further?
By Eckstrom October 28, 2011 at 11:06 am
btw, speaking of “franchise tax” I’m aware Delaware has that, is that what you’re refering to?
If so, you’re missing my point.
By norman October 28, 2011 at 11:46 am
Most of the corporations register there filings in Delaware as it is very friendly to corporate structures and dealings.
By Eckstrom October 28, 2011 at 1:24 pm
And to be clear, Ms. Payne will only allow anal. I use porn to rub off during natural acts.
By Payne October 28, 2011 at 1:26 pm
He never washes up. The only place he is ever going with that nasty thing is my ass.
By Eckstrom October 28, 2011 at 1:28 pm
Well, I’ve asked her several times to clean it for me, like a good girl.
By yarrr October 28, 2011 at 3:05 pm
“She railed against them when it came to Amazon – although she later let those incentives become law without her signature.”
The problem wasn’t the incentives but the competitive advantage Amazon would get with them no having to pay sales tax. There’s a huge difference.
By Woodrow October 28, 2011 at 4:18 pm
Of course SC is always going to give incentives. What nobody ever seems to acknowledge is that the reason SC offers incentives is because NC does and GA does and AL does and CA does and TX does and we go and on and on. Every state is constantly in a contest to one up the other one and it is fed by business that benefits from the “competition” in the market. No state can afford to put down their gun until all the states put down their guns at the same time in agreement. Business knows 50 states are never going to agree on something like this and the idea that the federal government might pass a law to prevent it would be anathema to FITS.
I return to the earlier question for FITS, if you were Governor and didn’t offer incentives for land, site prep, transportation upgrades, job training, etc. why would a company locate in South Carolina under Governor FITS News? And assume every other state in America continues business as usual.
By Peach October 28, 2011 at 5:20 pm
The Company had not even announced its arrival yet and she was already using their jet!
My God, is there any money or asset that she does not covet? Are there any bounds to her greed?
By I Like Tires October 28, 2011 at 5:48 pm
I don’t care if she goes all slurpy-burpy on the Nephron CEO in a public press conference!
We need jobs and money and if corruption will get that done then fuck the law.
Business is war. Make money. Lie, cheat, steal, murder, bribe, whatever gets it done.
I tried to spend “ideal” at the gas station. They wanted fucking MONEY instead.
This, I note, is a common trend.
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By mandyo October 28, 2011 at 9:55 pm
She likes to wine and dine. I wonder if the first gentleman flies on the jet with her. We need jobs here and we need them soon. People dont need anymore cuts to their benefits they have left and I hope she doesnt do anything to mess any more up. Why cant she use tele conference instead of traveling so much. Doesnt she need to stay in south carolina and do some work. Everytime you turn around she is around the coast. I wonder who she is hanging out with down there so much. I bet some could name a few names.
By rainbow October 28, 2011 at 9:57 pm
Think of the cost entertaining at the mansion. I guess she probably has already entertained some of these from this company coming to lexington since she is flying around in their jet.