Argument: Corporate Subsidy of wealthy citizens is wrong and our politicians have an obligation to protect us from their empty threats.
Rebuttal: Arena opponents play up public fear and animosity by pointing to the wealth of team owners and using terms such as “corporate welfare,” “held hostage” and “extortion” to describe their demands. What they fail to disclose is that large businesses, which are desired by communities around the nation regularly negotiate with municipalities for public participation. Without public vote or consideration governments gladly offer tax relief, infrastructure improvements, and other incentives to entice these entities to choose their area to conduct business. In fact, it is estimated that our state and local governments offer $64 billion in tax incentives annually to retain corporations such as the Sonics and Storm. Examples include $98 million in airline gas tax credits, offered to ensure that more airlines route their flights through Sea-Tac. This is nearly 10 times the amount needed to retain professional basketball in our region.
Supply and demand are simple concepts. There are 30 NBA teams available and hundreds of cities which desire the economic and financial benefits that they provide. If these benefits were not recognized by cities like San Jose, Oklahoma City, and St. Louis, there would be no risk of the team leaving.
When it comes to incentive negotiation, our city leaders’ mission is clear: Competitively retain the basic pieces of our economy and culture, such as the Sonics. When companies like Boeing, Internap and others continue to leave our city and state we need to ask why and hold the politicians accountable. Both Boeing and Internap cited “business-friendly environments” in Chicago and Atlanta respectively as primary reasons for their departure. Seattle needs to make investments to protect the $100 million in new money created by the presence of professional basketball. Drawing a “hard line” and losing this documented financial gain makes no sense.
Quotes: “We don’t negotiate with terrorists.”
- Washington State Representative Hans Dunshee, February 3, 2006
http://www.nwcn.com/sharedcontent/northwest/sports/sonics/stories/NW_020306SHBsonicsJG.684cd89d.html
“It’s just a political ploy, pure and simple.”
- Seattle City Council Chair Nick Licata, regarding whether previous ownership would sell or move the team
“The best social program is a job. The reality is, the bulk of incentives were very effective at creating jobs.”
- Rep. Jim McIntire, Seattle Weekly, Feb. 18, 2004
“Without that incentive package there would not be a 7E7 in the state of Washington. Economists gave Washington State very small chances, or low chances of landing the 7E7. But we did, because of the tax incentive package”
- Former Washington State Governor Gary Locke discussing the $3.2 billion incentive package offered to Boeing as enticement for 7E7 production. This package included tax exemptions as well as job training and support..
Seattle Post-Intelligencer, December 18, 2003
“The company settled on Atlanta because of a “business friendly environment”…Both Georgia and the city of Atlanta are offering incentives for Internap to move, including tax credits, relocation assistance, and help with the purchase of homes for employees. Many executive and government leaders have complained that Seattle…is not a good place to run a business”
- Seattle Post-Intelligencer, July 18, 2002 |