Distribution center incentives pose tough questions

By Scott Mooneyham | Sep 06, 2012

RALEIGH -- When it comes to taxpayer-provided incentives for business, those provided to retailers make the least sense.

The reason: Retailers need consumers/taxpayers more than consumers/taxpayers need them.

Retailers have little leeway when building or renting stores. They go where the demographics and transportation infrastructure suggests they will see the most traffic.

People may do a bit of oohing and ahhing when the hot, new restaurant franchise or big box retailer comes to town. That's still no reason to throw tax dollars at a company to bring relatively low-paying service jobs to a community when it is needed by the retailer to expand its customer base and revenue flow.

 

Distribution centers built by retailers are a different animal, posing trickier questions for the government ...

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