Corporate Welfare Gone Wild: GameStop Demands Tax Abatement

[McCamy Taylor]

No matter how bad the economy gets, we can all count on GameStop to turn a profit. Every dollar that flows through a teenaged boy’s hands eventually ends up at the videogame retailer. Fifty bucks for a flashy, computer generated graphic heavy game that will provide about twenty hours of play, then it’s back to the store for more. Yeah, I know you were able to get hundreds of hours of play from Final Fantasy VII and Super Mario Brothers. But times have changed. What is good for the light bulb industry is good for the gaming industry. GameStop is synonymous with “profit” in this country….

So, why the hell is GameStop asking for a handout?

GameStop of Grapevine and the General Motors assembly plant in Arlington are applying for refunds on state sales and use tax payments through a state incentive called the Texas Enterprise Zone Program.

For GameStop, the program would provide a tax savings of up to $2.5 million over five years. For GM, the savings would amount to $3.75 million. The tax breaks, tied to new investments, would come on top of other tax incentives the companies might receive.

Snip

GameStop plans to invest $150 million for machinery and equipment upgrades at its new refurbishing center and for renovation and remodeling at its Grapevine headquarters and warehouse. The game software company also plans "a large technology upgrade."

Michael Nichols, GameStop's senior vice president of finance, said the investment will result in new jobs, but "I don't now have a specific number."

http://www.star-telegram.com/2011/11/21/3543324/gamestop-gm-seeking-state-sales.html

Do I even need to talk about what is wrong with this? Ever wonder why our schools are so under funded, our classrooms so crowded? It’s because businesses that already make a bundle of money look at programs like this one and say “Hey! More free money! Let’s get some!”

Now, step back for a moment. All the way back to 1976 when Ronald Reagan invented the story of the Chicago South Side woman

"She has eighty names, thirty addresses, twelve Social Security cards and is collecting veteran's benefits on four non-existing deceased husbands. And she is collecting Social Security on her cards. She's got Medicaid, getting food stamps, and she is collecting welfare under each of her names. Her tax-free cash income is over $150,000."

http://en.wikipedia.org/wiki/Welfare_queen

The imaginary “Welfare Queen” shocked and appalled a generation of Americans who believed that no one should get rich by taking advantage of programs meant for those who really needed the help.

Keeping that in mind, what does that make GameStop? What does that make American capitalism? What does that make the American taxpayer?

[msongs]

1. so, ya don't don't get the breaks check til 2 years AFTER you produce the jobs lol nt

[joeglow3]

6. In almost all cases, yes.

Most states require a minimum capital investment and a certain number of jobs created. You cannot begin to collect incentives until these minimum thresholds are met. Typically, if your jobs fall below the minimum amount, you need to pay the incentives back (you have to maintain your job levels for 7 years in our state).

[madrchsod]

2. illinois did`t give caterpillar a big tax break and....

caterpillar invest almost 900 million in two plants. but illinois thinking about giving a big break to sears which is on it`s deathbed.

there`s more than a few that does`t want to give sears the money then turn around in a few years and pay for the unemployment insurance.

[Dont call me Shirley]

3. Extortion by the corporate overlords, criminals they all are.

[McCamy Taylor]

4. Seems to me tax abatements are used to get manufacturers to move into an area bringing

with them high paying, good benefit jobs that will stimulate the local economy.

When a retailer like GameStop asks for a tax abatement because they move a lot of merchandise in your area and employee a lot of minimum wage part timers with no benefits, you have to ask yourself "What will they do if we say no? Move their stores out of the DFW area and let Best Buy become the dominant player in the video game business in a prosperous area where lots of video games are sold?"

They are talking about a game refurbishing center being built in North Texas. I guess they could threaten to move the center to Alabama or Mexico. But then they would have to ship all the games they buy in DFW out of state and ship them back to sell them used. A refurbishing center is something you want to have close to the market. So you can recycle Call of Duty 3 as quickly as possible. Time is money in the video game business which is about resales. And what kind of jobs does such a center have? Minimum wage, poor benefit jobs.

[NICO9000]

5. And they'll create how many minimum wage jobs after their demands are met?

God, these people really know no bounds, do they?

[davidthegnome]

7. No... they know no bounds.

Is someone who creates a job paying minimum wage with little or no benefits a job creator? I suppose they are, in a way. Now when that same someone has millions upon millions of dollars and a life most of us could only imagine or dream of... and they create those jobs, are they still job creators? Or are they simply the Nobility or Royalty of the modern age? We work for them, because if we don't we don't work. Especially in today's economy, with so few jobs to go around.

The difference is of course, that in this age there is something of a social safety net that is slowly being torn apart. It is being torn apart as we give more and more license to the wealthy to do as they please, to treat us as they will - to buy our politicians, to break our laws, to use tax loopholes and evade paying anything resembling a percentage of actual income.

I can tell you for certain that this young man will never be shopping at GameStop again. I love gaming, but not enough to feed this sickness.

I'm furious - but not with the rich. I'm furious with rich assholes and the republicans who enable and support them. GameStop... well I'll definitely be talking to some of my friends in the gaming world. See if we can't make sure these bastards feel the retribution of the American spirit.

[Overseas]

8. K&R. Well said. So much disdain for individuals who need help

and profitable corporations taking more and more of our tax dollars get a pass.

How convenient for multinational corporations that they were able to buy the election of pro-corporate judicial activists to the supreme court to extend their power even further.

How convenient for multinational corporations that they can claim the privileges of natural persons without the accountability.

[PatrynXX]

9. Except for adventure games

I stopped playing games for 2 reasons. 1. what game play? which is why I switched to adventure games. they tend to be longer even if some suck.

2. the bloody DRM makes it so it's impossible to get the game to start. I've been buying my games at gog.com of late (good old games) although they plan on going the steam route but remain DRM free. Having their sort of DRM means if I used this on a blu ray ... it would refuse to play if I moved the player to another room. X_X and of course many games won't play if you have no wifi connection.... suddenly on my vacation 14-18th in omaha er technically very close to Ashland (great town actually) gog games came in handy... only games that were installed that didn't require the net. and there was no net in the cabins at mahoney.