Wal-Mart defends public subsidies Reacting to a study released this week by watchdog group Good Jobs First claiming Wal-Mart Stores Inc. has received more than $1 billion in economic-development subsidies from state and local governments in the past 20 years, a company spokesman said that is "a jackpot investment for local governments," a company spokesman says.
According to the 62-page Good Jobs First study, Wal-Mart has used the subsidies not only to fund local operations but to fuel the retail giant's tremendous growth, especially through its network of distribution centers. According to the study, available at www.goodjobsfirst.org, Wal-Mart received subsidies for two distribution centers in Kentucky. The study found that the state gave incentives of $15 million and $13 million under the Kentucky Jobs Development Act for the company to establish distribution centers in Hopkinsville and London, Ky., respectively. The Hopkinsville center, with about 780 workers, opened in May and is expected eventually to employ up to 1,500 workers, according to reports. The London facility, established in 1998, has around 1,000. Wal-Mart (NYSE: WMT) spokesman Gus Whitcomb said that incentives listed in the study, including the two in Kentucky, aren't giveaways. "We have no way of knowing if the figures in this study are correct," Whitcomb said. "However, if the $1 billion figure is accurate, it looks like offering tax incentives to Wal-Mart is a jackpot investment for local governments." In the past 10 years, according to Whitcomb, the company has: Collected more than $52 billion in sales taxes, half of which generally stays in local communities to finance schools, police and fire departments, libraries and other services. Paid $4 billion in local property taxes. Remitted $192 million in income taxes, wage withholdings and unemployment taxes to local governments. The figure is for employees' income taxes only, not the company's corporate taxes, Whitcomb says. In fiscal 2004, the Bentonville, Ark.-based company paid $4 billion in corporate income taxes, Whitcomb said. He added he has no dollar amount of public subsidies the company has received, and "such a figure would be open to interpretation." Good Jobs First, based in Washington, D.C., says its mission to help grassroots groups and policy-makers ensure that economic development subsidies are accountable and effective. http://louisville.bizjournals.com/louisville/stories/2004/05/24/daily29.html >I've seen this happen with manufacturing plants, but never with retail >stores. I don't doubt that they do this in some locations. But I've >never heard of this as SOP for wal-mart. > >I know Toyota did that when they opened the camry plant in Georgetown >Kentucky. But the wal-marts around here didn't do that. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Message: http://www.houseoffusion.com/lists.cfm/link=i:5:192507 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
