The new law gives newspaper printers and publishers a 40 percent cut in the state’s main business tax. The discounted rate mirrors breaks given in years past to the Boeing Co. and the timber industry.
Washington State newspaper readers ought to be asking what the state is getting in return. Tax breaks are given to companies to attract them to a state, to increase the tax base and bring new jobs. That’s not the case here.
I’m assuming it’s meant to keep the businesses in the state and/or prevent closures. But why, if they’re failing? A free market mindset would say let them fail so the deadwood can be cleared and new operations be born. A statist mindset says dump tax money into failures, making them beholden to the government.
Don’t believe it? Look at the continuing TARP saga. Today’s installment has the Obama Administration planning to dictate compensation practices to the banking industry, even banks that didn’t participate in TARP. That’s your local hometown bank.
Now we know how Washington’s governor thinks. That’s useful information for any Washington Tea Partyers out there. I would monitor their editorials, choice of stories and the slant given to them to see if the ruling political class in the state gets favorable treatment. Businesses understand that you don’t bite the hand that feeds you.
Will the battered taxpayers get a tax break as well? Inquiring minds want to know.