MuskogeePhoenix.com, Muskogee, OK

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October 15, 2009

THE PEOPLE SPEAK: Companies misuse tax credits to profit

It seems we continually see stories about government waste, fraud and other means of throwing away our hard-earned tax money by politicians and bureaucrats. In a September state story about a probe of tax credit transfers, Rep. David Dank, R-Oklahoma City, was quoted, “Tax credits are all too often abused in our state.”

The whole idea of tax credits is nothing more than a form of bribery to induce companies to either move to, enlarge or stay in the state. In practice, it seems that these credits can be sold or transferred to entities other than those to whom they were issued, often at a discount.

In practice, the recipient many times does not perform the promise which was made in order to receive the credit. One such example was the tax credit granted to the misconstrued Great Plains Airline, which was to begin nonstop service from Oklahoma City and Tulsa to the East and West coasts using bought or leased aircraft. The company soon went into bankruptcy.

It seems companies often use such tax benefits as leverage to induce other state or city governments to up the ante and end up never using the promised carrot. Just this year, Mercury Marine, a manufacturer of boats and engines, used a promise of such offers from the city of Stillwater to induce their plant union in Wisconsin to make contract concessions and instead of the promised move of all manufacturing to Oklahoma, is now going to close the Stillwater plant and move all its operations to Wisconsin. It seems to me that Oklahomans should boycott Mercury Marine in favor of other manufacturers.

Beyond that, we voters should look into the record of those who have pushed for these discriminatory handouts and if they are elected, term limit them at the next election.

Robert W. McDowell Jr.

Tulsa

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