PINEVILLE _ The Louisiana Quality of Life Campaign, sponsored by Louisiana Environmental Action Network (LEAN), awarded its Corporate Hog at the Trough Award for December on Thursday to International Paper and its Pineville paper mill in Rapides Parish.
The Corporate Hog at the Trough Award is awarded monthly to big businesses that take the most in corporate welfare dollars and give back the least to their communities. International Paper received $16,413,781 in corporate welfare through the ten-year industrial tax exemption and failed to create a single permanent job. International Paper avoided an estimated $5,908,961.16 in local school taxes. Louisiana is the only state in the nation that exempts big business manufacturers from local school taxes. The state paid International Paper $16, 413,781 and the company didn't create a single additional job.
"We should never pay more for jobs than what they're worth when it comes to tax incentives," LEAN Executive Director Marylee Orr said. "But in International Paper's case, the state didn't over pay for a job, because it didn't even get a job for the $16 million it doled out in corporate welfare."
Orr explained that the 10-year industrial tax exemption is unfair to small businesses and prevents the economy from growing. The 10-year industrial was originally intended for start-up manufacturers, Orr said. Currently, most of the tax incentive dollars go to long-standing Louisiana manufacturers.
"Our public services in Louisiana like schools, roads, water and sewerage are in bad shape overall" Orr said. "It's hard to appropriately fund these services when big business doesn't pay its fair share and small businesses have to pay their tax bills in full. As a result, small business ends up paying more than they should for public services they don't use as much. And when companies from other states consider locating here and see the condition of our roads, schools and other public services, they decide not come to Louisiana and everyone wonders why. We have to start looking at the impact this policy has on our quality of life."
Orr pointed out that in October the Corporation for Enterprise Development gave Louisiana two F's and a D in its 2000 Development Report Card, which rates states' economic development efforts. The report card specifically cited "poor quality of life" as a reason why companies do not consider locating in Louisiana. The quality of life indicators used in the report card included: infant mortality rate, high crime rate and high rate of uninsured low-income children. The report cited Louisiana's poor air quality and low numbers of health care professionals in giving the state an F in the area of "development capacity." Other factors also cited in the report for Louisiana's low grade for "development capacity" included infrastructure, education and financial resources.
"It's not enough to just give companies tax breaks and promise that your state won't enforce the pollutions laws in order to attract economic development," Orr said. "And it's because our economy is changing. The emphasis now is on technology-based and service companies. Those companies want to locate in places where the quality of life is high. As long as we continue with our present economic policy, companies that might improve our quality of life will not come here. And the only ones that will benefit are those large manufacturing companies - mainly oil and gas and chemical - that account for less than one percent of all companies in the state and account for only 10 percent of new jobs created."
Orr said that companies' collective response to receiving the Corporate Hog at the Trough Award begs the question.
"Every time we give this award, big business reaction is 'We never promised any jobs as a result of this policy and these tax breaks help us remain competitive and keep the jobs we have in the area.'" Orr said. "I'm not sure why it is the responsibility of the tax payers to keep big business competitive. As far as 'give us these tax breaks if you want the jobs to stay here,' that's just blackmailing the taxpayers pure and simple."
Orr said the fact that International Paper received $16,413,781 million in corporate welfare and created no permanent jobs over ten years is proof that tax incentives do not create and retain jobs. In 1998, these big businesses were given $300 million in taxpayers' dollars but created only 6,250 jobs. That means the state paid $48,000 a job. Orr said the jobs don't pay $48,000 a job to workers. Between 1982 and 1995, the state paid big business $4 billion in tax breaks and 26,000 jobs were lost. Taxpayers paid $154,000 for each job lost.
Orr pointed out that most manufacturers receiving the ten-year industrial tax exemption are polluters. During 1996, 1997 and 1998 the Pineville International Paper mill had total releases of 5,402,985 pounds.
Orr said pollution takes a toll on the state's economy.
"About 500 people die in our state each year because of air pollution," Orr said. " If you don't think pollution has an economic impact, ask the family members of those people who died about the economic impact on their families. Each Louisianian pays $1,000 more in annual health care costs because of air pollution and that comes straight out of their pocketbooks. Our total health-related economic costs because of pollution are between $2 billion and $7 billion each year. The idea that our environment is just some pretty little thing to look at and that there are no repercussions for damaging the environment just isn't true."
More Coporate Hogs 
More Coporate Hogs