What an incredibly misleading headline. I'm sure most of the irate commenters didn't bother to read the actual article.

JJ comments...


An Atlanta-based payment processing firm that rents space on the 39th floor of the Mack-Cali Downtown Jersey City tower, 101 Hudson St., will receive $6 million in state tax credits over the next 20 years to move one floor, expanding from 24 to 76 employees. The firm had threatened to move to Atlanta.

dem4ever05: Another corporate present handed out by the Christie administration.

Lyle C Chipperson: @dem4ever05 Three of the four people on the executive team of Economic Development Authority (the group who approved this) have been with that group longer than Christie has been in office.

samon: This kind of corporate welfare is unnecessary and it's bankrupting the country. For 74 jobs? Go back to Atlanta, thieves!

Raradevils: That equates to 25k per month over the next 20 years. I bet this is a net positive to the state with taxes received on both income and rental. Let's hope they continue to expand here bringing more high paying jobs to the area.

dem4ever05: @raradevils If the state continues to hand out tax credits at a record pace then NJ will never solve its pension deficit while big business continues to increase their profits

nicaMukul: You don't know what the revenue side of this was

tc124: We can do this but we cannot afford to keep programs for the developmentally disabled open or pay our pension obligations? Everyone seems to complain about unions but I think corporate lobbyist are the problem and the 4 Billion in corporate tax breaks under the Christie administration is the proof.

granddad1213: The voters of NJ must rise up and to make their voice be heard about this abuse. NJ has a revenue problem and this makes it worse.

jack300: "Mayor Steve Fulop, who said the deal is proof that Jersey City is becoming a "preferred location" for businesses." If that is the case, why the need for tax credits?

Chris: @jack300 that?s a great point. Especially over on the waterfront, at the address this company is located. Not exactly an area in desperate need of revitalization. Journal Square, Greenville or the Heights would be a different story.

pole732: And people WONDER why this state has HIGH TAXES Wonder if I could get a tax break if I move to an upstairs bedroom?

Ravensclaw: When will the voters wise up to what is going on? And they think unions are the problem?

acopcops: Nothing wrong with that if that?s what keeps them from moving to Atlanta and taking the jobs with them? It has little to do with the finances of JC?

c0mm0ncents: That makes sense. NJ can't even generate enough revenue to pay its own bills. Why not keep the tax credit train a Rollin.

Ted Striker: Corporations have learned to leverage states against each other. All you have to do is claim you're thinking about moving and then you get some sweet tax deals tossed your way. It's going to come to a point where citizens are going to threaten to move to another state because of the increasing tax burden being paid by us, and then will follow through on that threat because the tax breaks either need to be made up somewhere, or spending has to be cut...and in NJ we don't seem to have politicians willing to cut spending because they will lose votes.

nicaMukul: We lose taxpayers EVERY year

niboned: @Ted Striker Exactly. This is an idiotic race to the bottom, of which the only logical conclusion is that corporations stop paying taxes altogether and the state ends up paying them. Absolutely absurd. All states need to stop doing this and sell their locations on the merits (quality of employees, infrastructure, etc.)

NJay783: That equates to about 81k per job. I have to admit, those numbers are better than some of the other corporate gifts that have been doled out by the state but it still ignores the point. These companies have learned that cities are willing to sell themselves in order to bring in business. They leverage states and cities against each other which winds up a net loss for all but the corporations which continue to see rising profits at the expense of everyone else; including the tax payer.

highflyer56: @NJay783 Check your math. It's over 20 years.

nicaMukul: In case you didn't notice, this is a capitalistic country.

highflyer56: The headline is misleading. It the move was to a bigger office space and that many jobs were added, it makes sense. As the rebate is over 20 years, is only about $4,000 per job.

Chris: @highflyer56 $4,000 per job per year, but no matter...
This isn't the worst form of corporate welfare I've seen, but it still seems shady. How real was the threat of the company moving to Atlanta, and how do you prove that? Also, is there any way to penalize the company if they don't live up to their end of the bargain and keep every one of those 100 jobs here for the next 20 years?

Also, this is a specialized type of company and I seriously doubt that few, if any of the new jobs will go to Jersey City residents. But these new employees, regardless of where they come from, do have to eat somewhere and some may even stop in the bars before going home, so there might be some residual effect. Will there be more than $6 million worth of new tax revenue resulting from his over 20 years? Again, really hard to say and impossible to measure.

gyre: So, if the taxpayers don't give them any money to move upstairs and they decide to move out of state, how is this NJ's problem? Maybe it's a free market problem. The renters of the space need to drop their rents if they want to keep it filled. The real subsidy is going to the renters. We as taxpayers should get out of the way and let the magic of the market do its thing.

Ana Reader: @gyre it?s hard to lower rents when real estate taxes are so high.

Missusman: Did the state pay for their moving fees as well? All this for 26, soon to be 100 employees. Seems like all you have to do is threaten to move your company and then you get some tax breaks. Too bad that doesn't work for residents.

Ana Reader: @missusman if we threaten to move they tell us "good riddance" and collect a tax on our way out.

Missusman: @Ana Reader @missusman exactly.

JZ1080: Anyone who is "slamming" this deal really hasn't thought it out. A $6 million rebate is a drop in the bucket, and it is spread out over 20 YEARS. This creates 74 new jobs, at a minimum, and likely more to be created over the next 20 years. Each of those workers will pay taxes, which, when combined, will almost CERTAINLY cover the $6 million rebate. Those workers also have to eat lunch (and breakfast and dinners), which will boost local businesses. Other companies will hopefully see the success of running a business from Jersey City and be encouraged to do the same. The rebate is an investment, people. Get over it!

Seems like some commenters here are against ANY form of rebate as a matter of policy. That would be a quintessential example of cutting off your nose to spite your face. If no rebate is offered, the company moves out of state and the office space sits vacant. Jobs are lost, the area deteriorates, but the commenters here are pleased because the state stood firm on its no-rebate policy! So silly.

matt1605: @JZ1080 Why offer a rebate to ONE company instead of cutting taxes for all?

JZ1080: @matt1605 @JZ1080 Matt, first of all, one doesn't exclude the other. It is not an either/or scenario. To me, I think the city/state has a lot to gain from keeping companies based in state. Maybe if it was done more often (or more strategically), it would allow the state/city to cut taxes for its residents. I don't know.

Second, cutting taxes for residents and allowing the company to leave is a dead-end investment. It has no potential of bringing in future jobs and growth. Instead, I think it can be smart to entice companies to stay (and re-locate here), with the hope that it will allow the state/city to cut taxes on its residents in the future. Now, if the rebate was $200 M, or some equally ridiculous number, that's a different story...

matt16055: @JZ1080 what you are saying is that there should be no corporate taxes.

I agree. But handing out break one by one stinks of cronyism and breeds corruption.

"If the rebate was $200 M, or some equally ridiculous number, that's a different story"

Why does does the absolute number matter? Shouldn't it be based on amount per job?

JZ1080: @matt1605 @JZ1080 Ok, I'll give you that...amount per job does make sense.

63 and out: @JZ1080 @matt1605 that would be 80k. What if this bailout causes an imbalance and then 4 or 5 of their competitors move out of state because the playing field is no longer level?

JZ10801: @63 and out First of all, this is not a bailout. Not in any sense of the word. Second, I don't know if creation of an unlevel playing field is a valid concern, but if it is, we'd all hope that the city/state considered that before offering the tax rebate.

63 and out: @JZ1080 @63 and out If you think that's not a problem, try giving only one of your kids all the Christmas presents this year and the other none. Of course it's a problem.

JZ1080: @63 and out Companies are not children. The presence of certain companies is more important than others. Companies that supply a lot of jobs, for example, might be more important than another. I don't know what the competition is like for "payment processing" firms like First Data. But you can't make a blanket assumption that it is bad for competition.

63 and out: @JZ1080 @63 and it's all about the bottom line for all of them. If you choose to ignore the logic I have no help for you. By the way, those unimportant companies that leave also have humans that eat, live and sometimes drink in the town where their work is.

63 and out: @JZ1080 @63 and out OK, it's not a bailout, it's a gift. (Even though First Data admits to a huge loss saying it was better than expected).

Ana Reader: @JZ1080 it all sounds good until the company leaves before the 20 years are up. Of all the companies I've worked for, very few remained in their space for more than 20 years.

And a good number of tenants are gone in less than 5.

JZ10805: @Ana Reader Ana, I agree with your comment. Hopefully the city/state are smart enough to put some caveats in the contracts that penalize the company for leaving early. It would absolutely be enforceable and a good corporate lawyer would easily be able to draft such a provision.

Sal Johnson: @JZ1080 what prevents any company in New Jersey from ' considering moving' if they don't get a tax break? Sounds like good corporate policy from now on. Pandora's Box. By the way, why don't corporations that use the Federal tax inversion strategy, try the same thing in states they have a business presence. Why should LL Bean pay NJ Corp tax, their headquarters is not here! Another Pandora's Box.

Ed the Independent: People rant about instances of welfare for individuals or families, but should be more upset about all the corporate welfare that's handed out by politicians who are courting campaign money from these companies.

Still don't think we need real campaign finance reform? No other country in the world allows big money special interests to control the government's agenda as we do. It's costing us a fortune and hurting us in so many ways. Since money is the root of so many of our problems, I and others now will no longer vote for any candidate that does not support campaign finance reform.

matt1605: We officially impose the highest taxes in the nation. But if you come and have a chat with us (wink wink), we will lower your tax burden. Because all of a sudden we will ignore our core slogan, that high taxes do not matter because NJ's awesomeness will anyway keep business from moving.

Ana Reader: What happens when this company is out of business (or is bought out) or decides to move out of JC in 10 years? What if they don't hire 74 more employees? Is there a back end catch-up if the company doesn't live up to its end of the bargain?

citizen174: I think it's about time for an investigation into the EDA. Someone's interests are being served, but it doesn't appear to be NJ taxpayers.

NJCrazyDad: A bit disingenuous of a headline. They're being offered a discount of future year?s taxes as an incentive to not move out of state and some other things. Now, we can all argue whether that's worth it, how can you guarantee the future, etc. But, for the purposes of honest discussion of people of goodwill and advancing the thinking of all concerned -- can we have some reporting that is just a smidgen more objective?

vandelay industries: Another bailout in disguise paid for by Joe Taxpayer.
63 and out: So we're going to pay $80,000 for each job.....such a bargain!

63 and out: The EDA needs to be shut down until a complete forensic audit can be completed and it's results fully available to the public of course. With CC's lack of transparency you need to be specific and don't buy into his vaporous statements that say NOTHING!

fedupwithJCbull: That joke must be like welfare ... you get it and I don't.

upsidedown: You need to check the rent toll payers are for the NJTA at the Mack Cali in Woodbridge and they had owned their own buildings.

63 and out: I wonder what First Data's competitors in the state think about their tax break?

Missusman: @63 and they think it's time to threaten to leave too.

niboned: @missusman @63 and out Right, and then what? Do we bankrupt the state with more tax credits? Will they all really leave? This has to stop.

63 and out: Mack-Cali, one of the most politically connected, overpriced real estate dealers in the state.

Sal Johnson: Samson must be involved in this. or Baroni. or Wildstein. or Kelly, or Stepien, or CC, or Drewniak, certainly Drewniak.

Terrence T. McDonald | The Jersey Journal

An Atlanta-based payment processing firm that rents space on the 39th floor of a Downtown Jersey City tower will receive $6 million in state tax credits over the next 20 years to move one floor up in the same building.

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