AJC, 5/18/18 page b9 article “Mystery global company seeks Cobb tax breaks” reports that Cobb County Development Authority has approved a $264 million Bond to cover an economic development bribe for an unnamed International company that would result in a 10 year tax holiday for locating up to 863 engineering jobs to the county.
A Bond is like a mortgage and a 30 year Bond at 5% costs double the amount of the loan. It makes sense for a young couple to purchase a house and take out a loan, because renting just makes no sense unless you are subject to multiple job transfers. But even young couples need to get a 15 year loan as soon as possible.
Under Georgia Law, the County is allowed to amass debt limited to 10% of the entire tax registry of the county. That includes the value of all property in the county, not just the value of all county assets. Counties are allowed to borrow themselves into bankruptcy and they often do just that. Jefferson County Alabama went bankrupt over a sewer debt several years ago. Many cities in California have gone bankrupt over “economic development investments” that didn’t pan out.
Rural cities and counties have given tax breaks to manufacturing companies in exchange for moving their jobs to these cities and counties. This has been going on for decades, but these have always been subject to voter approval. Voters are no longer allowed to vote on projects that result in city and county debt in Georgia.
Public School Systems routinely sell Bonds and spend double rather than setting up accrual accounts for major construction projects.
Norb Leahy, Dunwoody
GA Tea Party Leader
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