Why are your tax dollars going to private corporations?

You pay taxes for police protection, but are told, we can’t afford more police officers during a rash of crime.

You pay taxes for street maintenance, yet, streets go unpaved because asphalt is expensive.

You pay taxes on your home, while other homes sit vacant, with uncollected tax bills – and fall into disrepair, dragging down your property value and wonder how it’s all going to turn around?

Well the Dayton City Commission thinks that by investing your money in church music and 15 “new full-time jobs” – they are being good stewards of your money:

The Dayton City Commission, on Wednesday, Sept. 16, awarded a $240,000 development fund grant to the Lorenz Corporation, 501 E. Third Street.

Founded in 1890, Lorenz is a publisher of religious and educational print music in the United States.

The company entered the general education market in 2008, expanding operations in its downtown Dayton headquarters.

Lorenz is investing $1.76 million in the expansion project, which will enable the company to create 15 new fulltime jobs and maintain 69 positions. The company or an affiliate must maintain the total of 84 full-time, permanent positions in the city though Dec. 31, 2014.

via Lorenz Corp. receives $240,000 development fund grant.

Sure, $240,000 may only pay 4 cops for a year, but, if we want to see people feeling that investing in Dayton is a safe investment- being able to say we have added 4 cops to the streets sounds better than we have a company with 15 more jobs making sheet music.

With our lousy track record of enforcing these “agreements”– one need to look at the money handed over to Enterprise Information Management.

From a reliable source:

EIM made a great noise about moving their headquarters from Rosslyn VA to Dayton and how they intended to hire 120 or so software developers.  The city and the State both chipped in some tax incentives and some money for training.

Needles to say, the 120 jobs never materialized,  in fact, most of the recent hiring has occured in Colorado Springs and EIM is in fact off-shoring work to Foxconn in Taiwan (yes, the company where the worked allegedly jumped out of his apartment window to his death after losing an iPhone prototype).  Foxconn does a lot of work in mainland China and EIM has contracts with the US Army and Air Force.

Bruce Lyman, the CEO of EIM was implicated but never indicted in dealings with ex-Congressman William Jefferson – the money in the freezer guy.  In fact the main government witness against Mr. Jefferson in his recent trial was Mr Lyman’s partner in EIM until she too became disgusted with the business practices and started wearing a wire for the government.

No local media has picked up or followed up on EIM- or called into question the practices of giving tax dollars to private companies in exchange for empty promises. At least if we’re paying for more cops- we know that they will actually show up and go to work.

It’s time to end this kind of corporate welfare- not just locally, but nationally. Unfortunately, as long as we continue to have “the best politicians money can buy”- like Mayor McLin and Commissioner Nan Whaley (at least $15,500 in “donations” to their campaigns by Westerville demolition contractor Kitt Cooper) we’ll not see an end to this.

If you believe we need independent, un-biased, honest leadership in Dayton, I ask that you consider donating $25 right now to my campaign.

Seems like a small price to pay to stop the handing over of almost a quarter-million of your money doesn’t it?

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12 Responses

  1. Gene September 18, 2009 / 8:48 am
    Why are our tax dollars going to private individuals in the form of welfare and such? Oh, that is right David, you are a hypocrite.

    I don’t agree with Lorenz getting money, but at least they are trying to provide jobs and have for nearly 120 years. I think they have paid taxes and I think their employees have as well. Heck, they may have earned it compared to the folks that just have their hands out so they can buy booze and drugs.

  2. Lynn September 18, 2009 / 11:32 am
    Hard to ignore the hypocrisy any longer, David.
    You benefitted from a major 20 year tax abatement on your Bonner Street property. Was that not corporate welfare? When will you be paying that money back to local government?
    I guess the rules are different for you. They must be, since now the abatement has come off, you are delinquent on your property taxes. When were you going to mention this on your website? Thought you were for full disclosure. Very dissapointing. Wonder how many people would give you money knowing that little fact?
  3. David Esrati September 18, 2009 / 11:35 am

    Hi Lynn- I’m paying that back, and all taxes are current. I was prepared to pay what I figured the tax would be when the abatement ended- around $500 a half. When it came in DOUBLE THAT, I didn’t have the cash.

    Thanks for pointing it out. At least I own 3 houses and one office building- more than Nan who was still a renter when turning in her petitions.

  4. David Esrati September 18, 2009 / 11:37 am

    And btw- if it hadn’t been for Bill Estabrook, the abatement wouldn’t have been granted. The city refused it at first. The building had $2,400 in back taxes when I bought it- and the taxes were only $50 a half. Yeah, they were doing their job well, before I came in and saved this building.

  5. Gene September 18, 2009 / 11:59 am
    But you did not answer the question regarding the 20 year tax abatement? You benefited, why not someone else? Especially a company that has 120 years under its belt, employees a decent number of people, and wants to grow and stay in Dayton.

    I am not for tax abatement at all. I just want taxes lowered across the board for all of us, individual income tax, property tax, business tax, etc. I think we should stream line taxes, simplify them. It does not have to be this difficult, but our genius government and super smart politicians can not see past their own pudding pops. They take care of themselves first, then their friends. It is total BS.

    Why does my stock broker pay $150,00 of federal income tax a year? He does not receive more national defense than another person and certainly receives no welfare for his large tax bill. It just gets old. Take, take, take. Then once taken it is waste waste waste. It is total BS.

    Property tax should be a flat fee of $500.00 a year, up to an acre. $100 more for every other acre. Income tax should be 5% federal, 2% state, 1% city. If you make a pile of cash, like a million bucks, yes, we can tax you more. 1% more on each across the board for everything over one million, over two million, etc. The rich still pay more, but this is more fair. But all of you liberals want to “redistribute” the wealth. Well then, all liberals should send me a $1.oo check – bc I will use it for the good of all.

    The hypocrisy is overwhelming, and the government stealing money from people is the biggest crime ever committed. It just never ends. WTF work when government will hand you checks for doing drugs and eating fast food?

    And, btw way, if you don’t think that is enough tax revenue, guess what? We cut worthless services, stop all welfare, and work with a “budget”, a word politicians do not understand. They just keep greasing the buddies so they live fat. Liberals need to see that it is this that screws them most, the paying for all the BS services. If people had more of their OWN money they could grow their business and spend more money on things they want or need, hence growing other businesses, therefore creating real, not bs government, jobs.

  6. David Esrati September 18, 2009 / 12:22 pm

    Gene- an abatement and a grant are two different things.

    I invested $65K to put a building back on the tax rolls. I increased it’s value. I didn’t make any promise of jobs- although I did create jobs. Jobs in fixing up the building, jobs of the employees.

    I increased the value of all the neighbors properties.

    I stopped the city from having to tear down a vacant structure.

    And- it’s in a historic district.

    Understand?

  7. Gene September 18, 2009 / 12:39 pm
    Different, yes, but in practical terms you received help (like a grant), took advantage of it, are an opportunist who cant see past your own pudding pops.

    I am sure Lorenz has paid plenty of taxes over the years in various forms, so granting them some money is not the worst thing. I am against it, but hell you can receive help in one form or another yet get mad with others receive it.

    Hypocrite. Liberal. Oh, same difference.

  8. Robert Vigh September 18, 2009 / 1:31 pm
    Gene,
    I am moving this weekend, Ill supply the beer if you want to just sit around and bash liberals!
    Something about that keeps me laughing and in a good mood and Ill need while lifting everything.
  9. Ice Bandit September 18, 2009 / 9:53 pm
    Can’t quit watchin’ that video where the dynamic duo from Big Government.com go to the Acorn office for advice on setting up their small business. Seems these two entrepreneurs wanted to import 13 year olds from central America to work in their Baltimore brothel. The Acorn reps not only told them how the skirt such obstacles as immigration and zoning rules, but threw in some invaluable info on tax evasion as a bonus. Of course the couple were mere poseurs with an agenda, but Acorn is rolling in over $4 billion in taxpayer dinero. Giving money to government is the equivalent of giving currency to crackheads; they can only be trusted to spend it in a foolish and self-destructive manner that leaves all of us poorer.
    After the Revolution, when the Ice Bandit is installed as President for Life and Defender of the Faith, the first thing he will do (after the pay-per-view massacre of divorce attornies and the mass destruction of aluminum baseball bats) will be the elimination of all corporate taxes. After all, they don’t pay them anyway, their customers do. And with no corporate taxes, no need for the bean counters whose job is to keep the IRS off their behinds. And no more David Esrati columns complaining about the aforementioned……………………..
  10. Civil Servants Are People, Too September 20, 2009 / 1:10 am

    “Lorenz is investing $1.76 million in the expansion project”

     
    The difference between a grant and a tax abatement?   The only difference is if you get it at the time of the investment, or if you get it later.    Either way, it’s a government incentive.
     
    I agree companies that benefit should be held accountable.   If the investment is made and the jobs are created, then the program works.
     
    By the way, what incentive did EIM get?   According to the DBJ article you linked to, it was a tax abatement – just like yours!

    “Enterprise Information Management Inc. in Dayton was awarded a 45 percent tax credit for five years to expand and renovate its Midwestern Regional Office.”

    Where is their corporate headquarters?   Dayton, Ohio.
    http://www.eim-usa.com/locations.php
    Oh those pesky incentives keeping companies downtown and creating jobs in Dayton!!
     
     

  11. David Esrati September 20, 2009 / 7:28 am

    CSAPT- the difference between my abatement- and EIM- I made an upfront investment, and raised the value of something worthless. They, just moved into the Talbot Tower and promised to hire people. Very different.

    The other difference between an abatement and a grant- one is foregoing cash in- while the other is paying cash out. Lorenz got a check- in advance.

  12. salt lake sealcoat April 12, 2011 / 4:19 am
    The reason perhaps why we enjoy less on our taxes is that our leaders/government officials are corrupt. They are so greedy that they steal the money of the government and spend it for their own. These people who are doing this are the real hypocrite.

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