Google’s Great Tax Escape

Less than 10 years old, Google has burst onto the scene like few companies in modern times. Now it is learning to throw around its weight when it comes to tax issues.

Google likes to utter the motto of “do no evil.” Of course, most people don’t believe this anymore given some of its recent predatory activity and collusion with the Chinese government on censorship. Regardless, many people in North Carolina are also starting to wonder how Google steamrolled their government to the tune of over $160,000,000!

As Google grows, it needs more facilities. More importantly, it needs some place to put them. Unlike other businesses, Google now has the clout to “massage” good deals on prospective locations. The massaging has everything to do with tax relief.

When any massive corporation starts considering a new facility, the states “come a runnin’” Why? Well, the states are looking for job creation. If they can get a large company to build a facility, jobs will be created. More jobs mean happy constituents. Happy constituents tend to re-elect politicians.

So, what do states have to offer the gigantic corporations? Nice views? Great weather? Nope. Taxes relief! The states essentially tell the corporation that they will waive certain taxes so long as the corporation agrees to build their facility within the state. It may sound sleazy, but it is an age old situation.

In the case of Google, North Carolina competed with other states to get the new facility. After all, a $600 million dollar facility is going to need a lot of employees, right? Well, Google apparently was unwilling to commit to any job creation numbers. North Carolina apparently decided it was worth the risk and took the plunge. It now appears the new facility will only result in the creation of a maximum of 200 jobs. Oops.

So, what did North Carolina give to Google to get the facility? The kitchen sink! The state has agreed to some massive tax benefits. It has waived all personal property taxes Google would have had to pay for 30 years. It also waived 80 percent of the real estate taxes the company would have to pay for 30 years. Now that is tax relief!

Should Google be blamed or condemned for running over the North Carolina politicians? No. Business is business. The next time you hear the “do no evil” slogan, just know it comes with a wink!