December 26, 2005

New auto assembly plant for Tennessee?

by Ben Cunningham
A new KIA auto assembly plant for Tennessee? Could be. Rest assured that the Tennessee Department of Economic Development is trying to hand over a very large pile of your taxpayer money to get this deal. It will probably dwarf the $194 million for Nissan.

Here is a thought experiment: Most studies indicate that 80% of new jobs are created by small businesses. What if we reduced Tennessee business taxes for ALL Tennessee businesses by an amount equivalent to the Nissan incentives plus the gargantuan giveaway that is probably being promised to KIA. Would we have more net new employment and a more diversified, stable economy?