May

19

Gateway closes KC office, makes off with tax breaks

May 19, 2006 | 4 Comments

Most local media have covered the story of troubled computer manufacturer Gateway closing its local call center and sacking the last 130 workers. What most aren’t digging into is that apparently Gateway isn’t required to return the tax subsidies it received to build its West Bottoms office building.

In addition to millions in TIF subsidies, the city also granted Gateway a rare exemption from the earnings tax. In exchange for all of this the company only managed to produce half the promised jobs and only a third of the promised office campus. Fourth District City Council candidate Mark Forsythe did the research that no journalist has done, finding and pointing out this deal had no “claw back” clauses to protect the city’s investment.

Categories: Business, Downtown, Earnings Tax


Comments

4 Comments so far

  1. Mark Forsythe on May 19, 2006 11:53 am

    I would like to point out that it wasn’t a complete pass on the earnings tax. It was for the first five years of the project not to exceed $1.5 Million. Still a nice little chunk of change.

  2. Northeast Guy on May 21, 2006 8:07 am

    Businesses will come and go. As long as we are dumb enough to pay companies to locate here we will have to live with the consequences, good and bad. I’m for separation of business and state.

  3. AeroSquid on May 21, 2006 8:17 am

    The separation of business and state? hahaha you’re living in the wrong country friend. American government is all about sucking big business dick. It trickles down from Washington.

  4. Free XXX Video on June 7, 2007 1:35 pm

    Porno Tie…

    Free Newest XXX Video…

Name (required)

Email (required)

Website

Speak your mind