Kochs, Crusaders Against “Corporate Welfare,” Cash-In On Tax Breaks In Louisiana

September 13, 2016

In their crusade against “corporate welfare,” the refrain that “government shouldn’t pick winners and losers” commonly emanates from David and Charles Kochs’ political organizations. But this apparent opposition to government involvement disperses when the Kochs stand to gain.

Georgia-Pacific, a subsidiary of Koch Industries, has been exempted from local property taxes for their Consumer Operations Center in East Baton Rouge parish for the past five years. During that time, the exemption netted the Kochs $1.9 million in savings–a hefty chunk of “corporate welfare.”

The property tax breaks may have seemed like a reasonable trade-off given the Kochs’ promise to create jobs at the center. But instead of creating jobs, the Kochs laid off 74 workers. Not such a bargain for the taxpayers. Luckily for the taxpayers of Louisiana, Governor John Bel Edwards has signed an executive order tying allocation of Industrial Tax Exemption Program dollars to job creation, a novel idea that seemed to escape his predecessor.

Read more about how the Kochs have exploited “corporate welfare”:

The “Anti-Corporate Welfare” Kochs Receive Another $7.2 Million In Corporate Welfare

March 23, 2016

For years, the Koch brothers have disparaged corporate welfare while their own companies received millions in breaks. Recently, a Koch subsidiary announced that the brothers will receive another huge tax break (AKA corporate welfare) for remodeling its headquarters.

Anti-Government Subsidies Company To Receive More Government Subsidies

September 9, 2015

Last week, the Department of Energy announced that it’s National Energy Technology Lab will award government grants (aka subsidies) to eight projects as part of their Carbon Capture Program. The Carbon Capture Program “is developing technologies that will enable cost-effective implementation of carbon capture and storage (CCS),” according to the DOE’s press release.

On Corporate Subsidies, Koch Donor Exhibits Appropriately Koch-esque Hypocrisy

August 4, 2015

It’s a funny thing when billionaire industrialists and their network of 450 similarly affluent political donors are tired of being “demonized.” One such donor, who attended the Koch brothers’ donor conference last weekend, “doesn’t like being portrayed as a villain,” according to the Wall Street Journal.

Background:

Georgia-Pacific Was Exempted From Paying $1.9 Million In Local Property Taxes At Their East Baton Rouge Facility

Georgia-Pacific’s Consumer Operations Center In East Baton Rouge Was Exempted From Paying $1.9 Million In Local Property Taxes Over Five Years. According to WRKF, “Among the renewal applicants is Georgia-Pacific’s Consumer Operations Center in East Baton Rouge parish. Owned by the Koch Brothers, the facility has been exempted from paying $1.9-million in local property taxes over the past five years. While they promised to create 21 jobs, instead, they have cut 74 employees from their workforce.” [WRKF, 9/13/16]

Georgia-Pacific Promised To Create 21 Jobs, Instead Cut 74 Employees From Their Workforce

While Georgia-Pacific Promised To Create 21 Jobs At The Facility, They Instead Cut 74 Employees From Their Workforce. According to WRKF, “Among the renewal applicants is Georgia-Pacific’s Consumer Operations Center in East Baton Rouge parish. […] While they promised to create 21 jobs, instead, they have cut 74 employees from their workforce.” [WRKF, 9/13/16]

Together Louisiana Protested The Consideration Of Industrial Tax Exemption Renewals

Together Louisiana Protested The Consideration Of Industrial Tax Exemption Renewals. According to WRKF, “Meanwhile, at the state Board of Commerce and Industry, members of the grassroots advocacy group ‘Together Louisiana’ were protesting the consideration of industrial tax exemption renewals. ‘The Governor has said in his executive order what is expected in order to say yes to these, and we do not have any governmental entities that are saying that they approve,’ Together Louisiana spokeswoman Dianne Hanley told the board. ‘And until that happens, the answer should be no.’ But board staff said the renewal requests predated the governor’s executive order, as they were filed before June 24, 2016.” [WRKF, 9/13/16]

  • Together Louisiana Data: “More Than Half The Manufacturers That Asked The Louisiana Board Of Commerce And Industry Today To Renew Their Industrial Tax Exemption…Cut More Jobs Than They Created During The Previous Five Years.” According to the Greater Baton Rouge Business Report, “More than half the manufacturers that asked the Louisiana Board of Commerce and Industry today to renew their industrial tax exemption for a second, five-year period actually cut more jobs than they created during the previous five years, according to data presented to the board by the nonprofit group Together Louisiana. What’s more, only three out of the 22 companies seeking a renewal of the state’s generous incentive program fulfilled the job creation claim they had made to the state when they applied for the exemption.” [Greater Baton Rouge Business Report, 9/12/16]

Job Creation Was Not A Requirement Of The Industrial Tax Exemption Program When Initially Created But Gov. John Bel Edwards Signed An Executive Order Tying Them To Job Creation.

Job Creation Was Not A Requirement Of The Industrial Tax Exemption Program When Initially Created But Gov. John Bel Edwards Signed An Executive Order Tying Them To Job Creation. According to the Greater Baton Rouge Business Report, “Actually, job creation was not specifically a requirement of the Industrial Tax Exemption Program, or ITEP, when the companies currently seeking renewal originally applied for the incentive in 2011. But earlier this year, in an effort to crack down on the billions in tax breaks the program is giving to big industry, Gov. John Bel Edwards signed an executive order tying ITEP to new job creation. The order also gives local governments a greater say in whether to grant the exemptions to companies located in their districts.” [Greater Baton Rouge Business Report, 9/12/16]

Governor John Bel Edwards: “There Is No Backtracking From What I Said We Will Do To Rein That Program In; To Make Sure That It’s Focused On Job Creation; And That We Are Not Giving Away Local Tax Dollars Without Locals Having Input.” According to WRKF, “‘There is no backtracking from what I said we will do to rein that program in; to make sure that it’s focused on job creation; and that we are not giving away local tax dollars without locals having input,’ [Governor John Bel] Edwards said, adding he will not approve anything that violates his order.” [WRKF, 9/13/16]

  • The Commerce And Industry Board Voted To Delay Action On The Industrial Tax Exemptions Until Industries Provided Proof Of Job Creation And Consulted With Local Governments. According to WRKF, “Ultimately, the Commerce and Industry Board voted to delay action on the requests until the industries consulted with local government, and provided proof of job creation.” [WRKF, 9/13/16]

Paid for by American Bridge 21st Century Foundation