Apple Gets Free Ride

 

Reno, NV, recently approved  $73 million in municipal tax breaks to insure that Apple Corp., the wealthiest corporation in the world, locates a data center  here to house its rapidly expanding cloud computing service.

When combined with state tax cuts, Apple will receive about $89 million in breaks over the next 10 years –  a 79 percent reduction in its tax burden that will include an effective sales tax rate of less than 1 percent.

 Meanwhile, Reno recently slashed its fire and police services because of budgetary woes.  Libraries seem to be closed more than they are open and once thriving casinos and  storefronts now feature seedy adult bookstores, lingere boutiques and tattoo parlors. The city, along with the rest of Nevada, ranks at or near the bottom of just about every national health and education assessment.

 Reno subsidizing Apple – a company worth $623 billion –  seems akin to asking David to carry Goliath on his shoulders. And for what? The Reno Gazette Journal says the Apple deal is expected to result in a grand total of 41 new full-time jobs to the region (not counting construction jobs to build the new facilities).

Officials said they “fast tracked” the Apple deal –  without any significant public input – on the theory that if Reno didn’t grab the deal, another municipality would.

 A new report by the National Employment Law Association blames unsound and irresponsible business tax breaks  for weakening state  unemployment compensation reserves around the country.

 NELA says 30 states were forced to borrow money from the federal government because they had weakened their unemployment insurance trust fund pool by providing ill-advised and unnecesary tax breaks to business.  These states will have to pay back nearly $1 billion by the end of September for federal funds borrowed to cover unemployment insurance.

  “A decade of tax giveaways when the economy was far more robust left most states’ unemployment trust funds depleted of reserves and woefully unprepared for even a modest downturn,” said NELA Director Christine Owens.  “Business lobbyists and their legislative allies engage in a cynical sleight of hand in trying to pin the blame for the unemployment funding shortfall and borrowing on unemployed workers, when the real cause is irresponsible financing policies leading up to the most severe downturn since the Great Depression.”

 Between 1995 and 2005, NELA reports, 31 states reduced employer contribution rates by at least one fifth, causing the nation’s average employer contribution rate over the decade to fall to its lowest point in the program’s 75 year history.

 NELA reports that at least ten states with a shortfall in their  unemployment reserves are now penalizing workers by passing legislation to reduce the number of weeks of benefits available to unemployed workers, severely restricting eligibility for benefits, or imposing measures designed to discourage people from filing UI claims.

Taxpayers too are paying the price for the unwise businrss tax breaks.  NELA estimates that states have  paid $3 billion in interest and penalties on what they’ve borrowed to pay unemployment benefits.

 According to the NELA report, Nevada, which has among the highest unemployment rates in the nation, borrowed $832 million from the federal government to pay unemployment benefits.

Reno, which, after-all, is a gambling town,  seems to be hoping that the Apple data center will magically attract high tech industries to the region, bringing jobs and prosperity.  A sucker bet? Not for Apple.

Walmart Shooter Felt Unfairly Treated

His supervisors said John Gillane was well liked and had no work issues.

However. John Gillane, 45, a nine-year veteran Walmart employee felt he was not fairly treated.

After purchasing ammunition at the Reno, NV, Walmart  store , Gillane shot and wounded three supervisors on Oct. 29, 2010.

Initial news reports indicated that employment conflict played no role in the incident. However,  the  Reno Gazete Journal newspaper has reported that court documents show that Gillane told police he  felt he was not treated fairly during his nine years of employment at the store. Gillane also was upset about a recent work evaluation by one of the three supervisors he shot, Eric Hill, and because his hours were being slashed.

Gillane  pleaded not guilty on Jan. 19, 2011 to attempted murder, battery with a deadly weapon causing substantial bodily harm and assault with a deadly weapon.

Court records show that Gillane told detectives he felt like he was “taking on Goliath” when he fired gunshots Oct. 29, 2010 at three of his supervisors at the Kietzke Lane store. Wounded in the incident were Richard Burns, Rick Sanders and Hill.

Preliminary hearing testimony revealed Gillane had many other problems, including two former wives leaving him for female lovers, a recent eviction, the fact that he didn’t see his young daughter very often and increased health insurance rates. Police were called to Gillane’s motel room two weeks prior to the shooting because Gillane was armed and suicidal.

Gillane told police that he was trying to intimidate the managers when he confronted them with a large, loaded handgun. Two managers testified they were shot when trying to flee from Gillane, while the third was shot while standing in the hallway. Gillane told police he planned to confront the managers during their morning meetings, so they could call someone higher in the Wal-Mart Stores Inc. corporation to listen to his complaints.

The victims testified Gillane was well-liked and had no work issues, and they were unaware he disliked them.

There is a long history in the United States of disgruntled employees taking up arms and shooting supervisors and co-workers.  A series of shootings by postal employees in the 1980s led to the term, “Going Postal.”