Should taxpayers take the risk?
The resolution (item 2) on the Chicopee City Council Finance Committee agenda for Nov. 14 basically supports the idea that tax dollars should be used to subsidize a business planning to operate at 77 Champion Drive. It seems that government at all levels wants to use tax dollars to support private industry.
A Germany-based parent will make some investments in the property. It will be run by local employees and could, over time, result in the hiring of some Chicopee residents. But it is asking for transferring some of the startup capital risks from the private company to the taxpayers in the form of tax incentives.
According to the Chicopee Assessors web page, the property has a current value of $4,118,200 and is being taxed on that amount. What will the tax incentive reduce this and the proposed equipment value to? What will the cost be to the rest of Chicopee’s taxpayers who will own no stock and enjoy no profits from their investment?
And what has happened to the American tradition that private business owners take 100 percent of the risk of private start-ups, not the taxpayers?