Update on jobs moving from NH to MA- We need to pay them to come

Funny how this wasn’t part of the initial story.

“The $6 million in tax breaks, which will be spread out over seven years, work out to nearly $27,000 per job and form the second-largest incentive package the state has awarded this year.”

Full story here

About tomasek1000

  • Instead of creating an environment that attracts business we have to bribe business to stay. So what’s the criteria for who get money and who doesn’t?

  • So, Rhode Island gets 38 Studios for a $75 million loan guarantee. We spend much more to help an existing company consolidate its operations, which will maybe add 225 jobs. In Rhode Island, if 38 Studios doesn’t create the 450 jobs they promised, they get fined $7,500 per job. In Massachusetts, if Smith & Wesson doesn’t create the jobs they promised they might see their tax break end sooner than the 7 years.

    I’m all for job creation, but I would much rather see statewide business incentives as opposed to the Commonwealth picking which particular business survives and which one closes shop. Moreover, it seems like the leadership of MA right now is all over the map with no consistent strategy. They want green, high tech and bio-tech jobs, but give incentives to Smith & Wesson over a software developer.  

  • States and municipalities have been in the business of offering tax breaks and incentives for business the locate and/or expand in their state and/or municipality.  However, all too often these tax breaks and incentives do not work for a variety of factors:

    – no concrete linkage between incentives and job growth

    – poorly defined measures for jobs (witness the total payroll approach used for Raytheon which allowed for job reductions while keeping payroll high to qualify for incentives by moving higher paid jobs to MA)

    – Lack of consistent strategy as to how to attract and expand businesses leads MA to pick the “flavor of the day” resulting in “bets” being made on industries and companies

    Instead, I would propose that we utilize a system of incentives that “reward” companies for relocating to or expanding in MA.  Such a system would have factors such as:

    – payments are made after the fact and based on measurable results.  If you do not achieve the agreed upon targets there is no incentive.

    – jobs are based on number of workers and their salary subject to a cap thereby limiting the ability to use highly compensated employees to let a company attain incentive levels.

    – incentives for net new jobs regardless of whether they are from newly relocated workers or new hired workers.  We want to attract employers and encourage those already here to grow.

    – incentives are based on longer term results not just a single year.  So you could earn, for example, 25% for year 1 growth, 25% for 3 year growth and 50% for 5 year growth.

    There is much more, but we need leaders to think in a different direction based on actual results not just promises.  The way we are doing it does not seem to be working, let’s try something new.

  • You know if I was a business, instead of looking to elect Republicans, it mught be a better move just to back the Dems and ask for a subsidy later.

    Thirty life sciences companies in Massachusetts have pledged to create nearly 1,000 jobs next year in exchange for $23.9 million in tax incentives awarded Thursday by a state board. The awards work out to a public subsidy of about $23,900 per job

    Companies awarded tax incentives Wednesday:

    — Aileron Therapeutics Inc. of Cambridge, $538,705, 20 jobs.

    — Boston Heart Lab Inc. of Framingham, $440,000, 36 jobs.

    — Caliper Life Sciences Inc. of Hopkinton, $270,000, 11 jobs.

    — Cytonome/ST of Boston, $248,546, 15 jobs.

    — Foundation Medicine Inc. of Cambridge, $78,777, 40 jobs.

    — InfraRedX Inc. of Burlington, $861,928, 32 jobs.

    — Instrumentation Laboratory of Bedford, $808,058, 30 jobs.

    — Ironwood Pharmaceuticals of Cambridge, $996,605, 37 jobs.

    — LeMaitre Vascular Inc. of Burlington, $115,000, 19 jobs.

    — Lightlab Imaging Inc. of Westford, $75,148, 14 jobs.

    — Merrimack Pharmaceuticals of Cambridge, $1.35 million, 50 jobs.

    — Nanobiosym Diagnostics of Medford, $673,381, 25 years.

    — Novartis Institutes of Cambridge, $1.13 million, 42 jobs.

    — NuOrtho Surgical Inc. of Fall River, $573,000, 25 jobs.

    — NX Stage Medical Inc. of Lawrence, $1.35 million, 50 jobs.

    — OPK Biotech of Cambridge, $110,000, 52 jobs.

    — Organogenesis Inc. of Canton, $457,899, 17 jobs.

    — Still Rivers Systems Inc. of Littleton, $296,288, 11 jobs.

    — Sunovion Inc. of Marlborough, $942,734, 35 jobs.

    — Valeritas Inc. of Shrewsbury, $480,000, 18 jobs.

    — Vertex Pharmaceuticals of Cambridge, $2.4 million, 90 jobs.

    — Viacor Inc. of Wilmington, $480,000, 20 jobs.