Thursday, August 2, 2007

Little Debbie® Gets Your State Tax Dollars


McKee Foods Corporation received a $422,783 check from Arkansas taxpayers on July 24. The corporate welfare check was presented by State Representative Daryl Pace (R-Siloam Springs), and it is said to represent a payroll rebate to the company's Benton County operation. It is the way state economic developers take your tax dollars to reward private corporations who hire more workers at relatively low wages. They call it "incentives," and it increases corporate profits at your expense.

The initial state payment to the corporation covers the payroll period from February 15, 2002, to December 31, 2005, after the corporation requested and was granted an extension when it failed to produce the new jobs originally promised. Another check to cover the period from Jan. 1, 2006, to Dec. 31, 2006, has been applied for, though the amount has not yet been determined. How long and for how much we will keep subsidizing the corporation is unclear. You can count on more of your tax dollars going into the pocket of stockholders, so dig deep to reward the welfare state of mind for corporations. It's good for business.

McKee Foods Corporation makes Little Debbie Nutty Bars and other nutritious snacks, and they are taking us on one sweet ride. If they layoff workers next week, do you think they'll return the money? Fat chance.

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