Let’s recap the political news surrounding American Greetings first.

American Greeting, citing a minor increase in the City of Brooklyn’s personal income tax (which I don’t believe is one the company itself pays except as a payroll withholding for its employees), threatened to move to Illinois, which just enacted a significant hike in its corporate tax rate (which it would pay if it was located there.)

Enter Governor John Kasich, who promptly promises the company millions in state aid.  In fact, the combined state and local aid package to the company is so large that it will construct a brand new corporate HQ for the company at no cost to the company.  Over the next, 15 years, starting last year, American Greetings is getting roughly $93.5 million in aid.

Even worse, we know that in the Diebold deal that the company could keep every penny in its “free HQ” deal so long as it doesn’t fire more than 20% of its workforce.  We don’t know if the American Greetings deal, which was first, got the same term because, frankly, we didn’t think to look for such a ridiculous term before.

American Greetings, fresh off of getting a massive infusion of State and local subsidies, gives its CEO a nearly 19% raise (May, 17, 2011). 

Today, the company laid off 30 people as part of its “overall strategic focus of the company.” (Source: ONN)

How much you want to bet that American Greetings can still keep every penny of the roughly $94 million in aid it got despite the fact that it didn’t save all the jobs at the company?  How much do you want to bet this isn’t the only downsizing announcement we’ll hear from American Greetings before it’s all said and done.

I guess we’re going to have to start keeping a tally of how many jobs Kasich really has “saved” with these deals.   The other real question is did companies get terms like Diebold got because the Administration knew they planned on downsizing even after getting these generous tax incentive packages?

Evangelize!
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  • Sluggo

    Nice work Governor.  Moving at the speed of business to give Ohio tax money away to corporations that feel no obligation to the state in return.

  • Anonymous

    Interesting that political leaders are quick to point out that small businesses are the driving force in our economy, but giveaway big money to large corporations.  I’m no economist, but I wonder if the state that says we will not cater to large corporate interest, thereby making its economy reliant on such small businesses, wouldn’t be more stable and prosperous.

  • Jcontrague

    If I threaten to leave Ohio, will Kasich give me a few million?

  • http://www.plunderbund.com Eric

    Only if you promise to create jobs by laying people off! Sign up!

  • http://www.facebook.com/people/Carrie-Preston/100000765994211 Carrie Preston

    Let me see. I think the public schools of Ohio should threaten to move out of Ohio unless they get  $94 million tax aid. Then let’s see how many jobs we will save in Ohio. How many teachers would not get laid off in the up coming years and how many new teachers could we hire for that amount of money. Let’s see how much more money that could get moving in Ohio’s economy since that is good solid middle class incomes that spend a large amount of money in Ohio. It would increase the students education so that other companies would want to come and hire our educated work force. Thus hiring more creating more middle class who would then spend more ……..
    Just a thought. what do I know.

  • WILLIAM PARSONS

    Will Ziggy get his pink slip???

  • Demydo

    Why not give Kasuck 93 million to leave the State of Ohio?  Think of all the money and jobs that would be saved if this could happen.

  • http://maldives2you.com/ maldives honeymoon package

    This is a very significant blog.  Thanks for sharing your thoughts. Keep up the good job in posting very good topics. 

  • Annekarima

    I think that one was tried.  Someone keeps giving him money to come back.  :)

  • Annekarima

    Or maybe I meant :(

  • Dmoore2222

    Oh. I thought this was a free market economy. If so, why on earth are Ohio taxpayers  underwriting these kind of deals. Where are the big balls republican capitalists who are always complaining about socialism? Isn’t this pretty much what these deals are? Why is the government intervening in the market place (other than to make sure the CEO of American Greetings gets his 19% raise)?

  • http://profile.yahoo.com/FIPIBCVVCNWYE5MOQFESDADZTA Angry White Male

    My wife worked at AG for over 20 years before her position was “eliminated”. She was replaced with a fresh grad for half the money.  The layoffs there are never ending and the fear of loosing your job is AG’s management style. Ask anyone who works there, this place is a hell hole. It makes me ill that my tax dollars were used to fund this extortion. 

  • Fotogirlcb2002

    All he needs is a big red nose and floppy shoes …………

    makes a clowns outfit complete ……………..

    doesnt it ……………….

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