Business Reform looks at Tulsa's corporate welfare bid

In Business Reform, a national online magazine that looks at business from a Christian perspective, Noah Knox takes a hard look at Tulsa's proposed Boeing bribe and the overall economic picture:

Boeing's clear ransom note? If you want our jobs, you need to pay our price. The tactic apparently is working, at least for the company. Washington taxpayers' ability to survive $3.2 billion in ransom payments, or Tulsa taxpayers ability to support $1 billion in new taxes is much less clear.

However, other companies are learning from Boeing's success. Just within Tulsa, at least three other companies have issued their own ransom notes. The $1 billion tax package also include $22 million for American Airlines to keep that troubled flyer's maintenance facility in town. Since the Boeing package was announced, rumors have also conveniently leaked out of Citgo and TV Guide that those companies may move their headquarters out of town (with the obvious but unstated postscript of "unless taxpayers cough up the ransom"). ...

However, local government leaders continue to favor the ransom demands of the big companies over the real growth needs of small businesses within their communities. In his Batesline web log, Michael Bates points out that two-thirds of net new jobs are created by small businesses, and that these small businesses create virtually all net new jobs during a recession and the early portion of recovery.

Like the other multi-million dollar ransoms being offered to Boeing, Tulsa's new tax plan includes virtually nothing to help the small business owner. But then again, new taxes rarely are the best answer for anything. Leaving the money in the hands of individuals to invest in entrepreneurial ventures is clearly a better solution.

Go read the whole article. (And Noah, thanks for reading.)