Toyota had the opporunity to place a new automotive plant in Candada, Alabama or Misisippi, or some state in the Northern U.S. Alabama/Mississippi offered roughly twice the financial incentivaes that Canada did. Toyota chose Canada because it was still a better deal. Why?
CBC News explains. In spite of the much greater financial subsidy, the Alabam/Mississippi workers have much lower education, so the cost of training them is higher than in Canada. Second, the cost of healthcare benefits for workers in the Northern U.S. is $4 to $5 higher than in Canada where they have national healthcare.
Poor education systems and lack of a government-run health insurance program makes the U.S. less economically competitive.
Texas is currently in a special legislative session trying for the fith time to underfund education without taxing business. So far, the proposals they have accepted will increase the sales tax (regressive tax that hits everyone, low income the hardest) while giving large tax breaks to those who earn over $140,000 per year.
A low tax - low benefit state like Texas which tries to be less expensive for business than even Mississippi is inherently less competitive in today's global economy. Of course, that runs right along with the fact that Texas Republicans tend to be ignorant, stupid and selfish yahoos and greedheads.
[Directed towards the CBC story by Wejerge at dKos.]
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