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State, local incentives of nearly $158.5 million sealed Airbus deal

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To close a deal with Airbus, the state of Alabama and the city of Mobile had to make huge concessions in forms of tax breaks and infrastructure improvements. Both think the deal will pay large dividends over time. (blog.al.com) More...

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davysims
David Sims 7
The thing most people miss about these incentives is they are usually in the form of tax breaks, they cost the government nothing. They are giving a break on a property tax that they would not have collected if the company wasn't there anyway. However it is usually a net gain for the area, because the business will hire people, people that will pay income tax, property tax, and sales taxes. People that will shop in the community, buy or build houses in the community, and contribute in ways you can't put a price tag on. Definitely a win/win, just wish my state could figure that out.
rebelx4xchrist
Paul Smith 3
I really don't understand why people are complaining... This is creating jobs in the area and stimulating the economy.
sparkie624
sparkie624 -2
It is sending money out of the country... This is dumb liberal government. If you are going to give away money, give it to a US Based Company... Not a company that sends it profits over seas.
bishops90
Brian Bishop 1
You think the government of the state of ALABAMA is LIBERAL???

"I'll have what he's having..."
preacher1
preacher1 2
Give me some of that too. Dang Sparkie, Work is Work. If the product is crappy, people won't buy it and if it is good and well priced, they will. Japan showed us that with cars several years back and you pretty much have more foreign mfg assembly plants here than you do domestic, and all of them paying dang good money.
bishops90
Brian Bishop 4
Congrats to the state of Alabama (again). Anytime there is the possibility of a new major manufacturing investment like this, there is a practial bidding war to see who can win the prize. My home state (SC) tried to lure both Mercedes and Honda, but lost to 'Bama. However, we did win BMW, Boeing, and now Bridgestone / Firestone which along with Michelin who has been here for decades will make SC the largest tire producer in the country.
Point is, these incentives have been PROVEN to be a major win/win for all involved, and are not some kind of big corporate giveaway that "some" - as the article mentions - would have you believe.
preacher1
preacher1 2
As a resident of Arkansas, it is easy to see SC, TN, Bama, MS, and TX that seem to realize things like this and wonder why we always have some curdmudgeon griping about what it will cost and in a position to nix the deal. Just in the past 2 years, we lost 2 car plants and a major distribution center, that had all pretty much decided on the area, but the State wouldn't come up with their part, which amounted to a little infrastructure. The last thing of any substance that located here was a steel mill over in Northeast AR that, besides their own multi thousand employment, caused about a dozen related companies to locate there. Had it not been for the power company and corps of Engineers, as well as the city having an abandoned airbase for an airport, it wouldn't be there. The State didn't do anything to help.
bishops90
Brian Bishop 1
For some reason I thought you lived n Tennessee. Sorry we had to take your Hogs out of the college world series like that, but not really. Funny that they put all 3 SEC teams in the same bracket. Although I'm a UGA Dawg myself, still gotta pull for the home-state roosters when they do that well.
Pretty off topic huh? Sorry.
preacher1
preacher1 1
Your boys are pretty good on the diamond. They got some catchin' up to do on the gridiron though.lol Although it will be interesting to see what happens to us this year with the coaching change. She wasn't a bad lookin' gal but that stuff was awful expensive.lol
bishops90
Brian Bishop 1
Aint that the truth. Well come football season I'll be in Athens Jawja most home game saturdays. If we can keep folks healthy and outta jail, I think we'll win the east again.
racerman
larry clement 1
As long as the workers in the south have the brains to stay non-union, the manufacturing sector will continue to grow. Congrats to Al.
WALLACE24
WALLACE24 1
I don't see anyone complaining.
preacher1
preacher1 2
There was some curdmudgeon or negativity in one paragraph of the article. The rest of the states are just going to have to wake up. With a rebounding economy and companies probably going to expand, they can't sit back and say woe is me, nor can they wait until companies come to them. They are going to have to seek them out.
WALLACE24
WALLACE24 1
That showed up while I was typing. Lol.
WALLACE24
WALLACE24 0
Great for US. So we have a government backed aircraft manufacturer moving here because costs ( labor) are cheaper. So they are screwing their own people. And that is how socialism works.
Zaphod58
The area I live in (not near Mobile unfortunately) has had a higher unemployment level than the state average, by about 2-3% for a couple years. We just recently dropped down below 10%. They're not screwing anyone by doing this deal, they're actually creating a couple thousand jobs. I just with this area would realize this, and stop chasing business away.
WALLACE24
WALLACE24 6
Excellent deal for AL. Not so good for the French work force. I like it!
JD345
JD345 4
They kind of price themselves out of their own jobs.
preacher1
preacher1 3
Why do you think the folks in Renton are bitching about the SC Boeing plant?
Wingscrubber
Wingscrubber 1
You do realize this is an 'assembly plant' which is being built right? The parts will still be coming from France, Germany and UK, the objective is not necessarily eliminate French jobs but to increase throughput for Airbus, it will actually create more jobs in the US and in Europe. Same goes for the plant in Tianjin. So maybe not so much 'screwing their own people', as much as they are screwing those in Renton, eh?
WALLACE24
WALLACE24 1
Ever how many jobs get filled in Al. is the same number the French could have had. They are a socialist state where the gov. takes care of the people. It isn't working.
preacher1
preacher1 1
This plant does several things as far as competition goes and with such a market, it makes sense to put it here, BUT, they needed the capacity of an extra plant. They could have built it over there but they chose not to.
WALLACE24
WALLACE24 1
Great deal for US. I love it especially considering how much the French despise us. We know why they are doing it. They want to sell planes here and they can assemble cheaper here. I just think it's ironic that when the chips are down this government backed company chose $ over their people. LOL
Wingscrubber
Wingscrubber 1
Ah, displaying some patriotic US exceptionalism I see. It's a bit more complicated than just 'LOL SOCIALISM DON'T WORK HAHA!', fundamentally it was a business decision for Airbus to build a US assembly plant, not a political-societal one, but since you're having a dig at France, why not make an objective comparison between some real economic indicators in each country.
http://reasons-and-opinions.blogspot.com/2007/05/france-vs-united-states-argument-from.html
Seems to be working just fine to me.
preacher1
preacher1 3
Regardless of which side of that fence you stand on, French animosty toward the US is well known as is their penchant for entitlements and "life owes me a living" mentality. AB's decision to put the plant here WAS a business decision but if you look back at the reasons, you will find that cost is the underlying factor and caused by the aforementioned attitudes. IMHO
WALLACE24
WALLACE24 2
Guilty as charged. Regardless of any economics, I want less government not more.
WALLACE24
WALLACE24 1
A lot has changed since those opinions were put out in 2007. Greece is just the begining of the dominoes to tumble. That said, the US is trying it's best to follow. We still have more freedoms than most and opportunities. I am of old school "you don't work, you don't eat". Gets peoples priorities and incentives lined up right quick.lol

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