Oregon subsidizes Wal-Mart to the tune of $4 million

Out fucking rageous:

I received an email late last night from the Governor of Oregon.

I had written to Governor Ted Kulongoski asking him why the taxpayers of his state were subsidizing Wal-Mart with a $3.7 million tax break they didn’t deserve. “Thank you for sharing your ideas and concerns,” the Governor told me. “I believe citizen input is vital to a strong and healthy society and I urge your continued involvement.” […]

According to the Beaverton Valley Times, Wal-Mart received a fat subsidy at taxpayer’s expense by buying a tax credit from Solar World, a German company that makes photovoltaic solar panels. The city of Hillsborough, Oregon was able to attract this large solar production plant, and its 1,000 jobs, by offering a candy store of tax-subsidized incentives to the manufacturer. But some of the profits ended up in Wal-Mart’s pocket instead, because of a bizarre arrangement that allows manufacturers to sell their tax credits to companies who are doing nothing valuable for the environment, like Wal-Mart.

According to the Valley Times, Solar World was given an $11 million renewable energy tax credit. Solar World was then allowed to turn around and sell that credit to Wal-Mart for only $7.3 million, two-thirds of its real value. The full $11 million value of the credit was 51% more than what Wal-Mart paid for it. Wal-Mart can now use the full credit to reduce its corporate income taxes on profits owed to the state, earned at Wal-Mart’s 32 stores across Oregon. Wal-Mart can spread this $11 million tax credit over the next five years. Oregon taxpayers lose out on $11 million in income taxes that the corporation would have paid, and Wal-Mart makes $3.7 million for merely buying up the credit. […]

For Solar World, the tax credit had more value as a commodity to sell—than as a tax break, because Solar World only pays the state minimum tax of $10 per year. The tax credit was worth little to the company—unless they sold it. “A tax credit’s only good for those people who have a tax liability,” explained a representative of the Oregon Department of Energy.

Huffington Post: Wal-Mart Becomes Oregon’s Welfare Queen

1 Comment

  1. If the ‘teabaggers’ were serious about emulating the Boston Tea Party, they’d be gutting Walmarts and dumping the merchandise in the Willamette. the whole point of the Boston Tea Party wasn’t taxes, it was the fact that the East India Company didn’t have to pay tariffs or fees to import their tea, but the locals did have to pay tariffs and fees to sell LOCALLY GROWN TEA. See the parallel now?

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