Would they really hire 150 people???

http://www.northjersey.com/news/business/5-4m-in-tax-breaks-offered-to-2-firms-1.1049411

2 more no-name companies have gotten a buyout to move their digs to New Jersey.

2.4M for one and 3M for the other. Life is good. Who ARE these companies???

The claim is that they “could” bring up to 150 jobs to the town they are moving to. Really? Livable wage jobs that one can easily live on and pay bills with? In these parts, that is 50K a year to start with.

The incentive and “enterprise” program is a waste of money. Just what are we getting for the money? How is forking over millions of dollars to a company *really* helping the economy, both very local and other?

How many jobs does it actually create?

More food for thought. How come I can’t announce my company’ sintentions and get 3M for operating it as locally as it gets — my art studio???

One of these companies in the “enterprise zone” called me one business day after they set up the interview and said “The interview is cancelled; we did not get the money for the job. If we ever have the job again, we will call you first.” Silly company, silly people, silly mindset. NO real business with intelligent people has that kind of a collective brain.

Why are we handing out our hard earned money to chicklet little companies nobody’s heard of? Life’s Good is moving to Englewood Cliffs — and they will be paying out of their own pocket to construct their new headquarters. That’s the way it should be: no handouts; if you want it, YOU pay for it, not the state.

Frontage Labs is one of the companies — “Frontage is a global service provider with locations in the US and China.” This is from their website.  And a click to another tab on the website reveals that the company is Chinese-owned.

Could we please stop doing business with ANY company that associates with CHINA!

I will bet the jewelry company has lots to do with thirld world countries. Judging from their website, nothing at all is manufactured here.

Could we help our own, for a change, really? Is that so much to ask??? There are plenty of businesses here in NJ that are home grown and will stay that way — no bases anywhere in any third world country — why can’t we use this money to help people in our own state, the start up companies that really need the money? If we are going to give incentives, can’t we help our own?

2 thoughts on “Would they really hire 150 people???”

  1. If a company truly is offering decent jobs to Americans I would be open to giving them breaks. Not that I want to do that but if the alternative is for them to not hire or outsource then I choose that. However many of these companies getting breaks often hire temp workers or visa holders or they are low paying often part time jobs. There is a factory near me that just hires temp workers. However I believe they are going over to China so not even temp workers now.

  2. There is a difference between a tax break and being given money outright, as I am sure that you understand. If hiring is not up to predictions or they invest less, less revenue will be lost by New Jersey.

    Let’s presume that the companies receive the Business Retention and Relocation Grant. This is worth up to $2250 per job relocated or retained in New Jersey for up to six years. For 150 jobs, this is $2.035 million over six years. The company also must commit to remain in the state for the period of the grant plus an additional five years. An existing company must “save” at least 50 jobs and make a capital investment at least twice as much as the credits. For a 50-job company, they would have to make an investment of at least $1.35 million.

    The Manufacturing Equipment and Employee Tax Credit Program offers a 2% tax credit, up to $1 million, which requires a $50 million investment to earn, but increases to 4% for employers with fewer than 50 employees and less than $5 million in income. Companies can also get a tax break of 3% of the value of the equipment, up to $1000 per employee, for two years, so a small company can recover up to 10% of the value of investments in equipment. Larger companies can recover 8% of the value of equipment investments. If a qualified company buys equipment in 2014, you get the employee tax break in 2015 and 2016, and these tax credits can be carried forward for up to seven years. This is not an exhaustive list. Chances are that they are eligible for other programs, but this covers the majority of the tax breaks.

    The answer to your question of why you can’t get that kind of money is twofold: you are not in a position to invest the money that would give you the tax credits for investing in equipment, and you don’t have a going concern that employs 50 people at the moment or a viable business plan to create 50 jobs. You should be able to take advantage of the New Jersey Small Business Development Centers, but a larger problem is that if you expanded your art business, your studio is not zoned for business use. That might just be a question of filing for a variance.

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