Protest Corporate Welfare for Prudential

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In Solidarity with Occupy Essex, we joined in a protest on Friday June 1 to object to the awarding of a $210 million tax break for Prudential to move a few blocks to a new location in Newark.

 

  1. CharlieCharlie06-01-2012

    This was emailed to Occupy Trenton by:
    Nicole Dallara, Outreach Coordinator
    New Jersey Sierra Club
    145 W. Hanover Street
    Trenton, NJ 08618
    609-656-7612

    # # #
    For Immediate Release

    June 1, 2012

    Contact Jeff Tittel, 609-558-9100

    EDA Prudential Deal: Own a Piece of the Rock

    “The state of New Jersey is at it again with the EDA today approving $210 million in subsidies for Prudential to build an office tower. This time it is even more outrageous since Prudential is literally only moving four blocks. We are giving them basically over $50 million a block to move. The EDA now stands for Every Developer’s ATM giving away millions to corporations for moving down the street.”

    “Meanwhile, they will vacate over 900,000 square feet of office space in the Gateway Complex across from Penn station causing a serve economic impact to that complex. Downtown Newark is littered with empty Prudential structures from the building on Washington to another one up on University and now the Gateway Complex. Hundreds of millions of taxpayer’s subsidies are being used without creating new jobs making it a giant tax payer giveaway for corporate welfare.”

    “The Prudential slogan used to be ‘Own a Piece of the Rock’ now the Rock Owns a Piece of Us’. Originally, the amount was going to be $40 million higher. Since, in the original subsidy mistakes were made it was lowered not because the state was being careful with our money but because of technical errors. Yesterday, the legislature had to raise the amount of money in the Urban Transit Hub fund with another billion more dollars. Tax payers in New Jersey now have to hold onto their wallets,” said Jeff Tittel, Director of the New Jersey Sierra Club.

    More Tax Payer Giveaways to Corporations

    Yesterday the Senate passed S1562, which would increase the amount of tax credits given under the “Urban Transit Hub Tax Credit Act”. This is just another giveaway to the special interests and corporations in New Jersey. The increase would be from $1.5 billion to $2.5 billion and an increase in tax credits for “Grow New Jersey Assistance Act” from $200 million to $400 million. 4% of the Corporate Business Tax is dedicated to environmental programs including watershed protection, cleaning up environmental sites, retro fitting diesel for school buses, and fixing our state parks. By taking this money away from these programs the Governor is hurting jobs in New Jersey and the environment. National studies from Universities and independent Think Tanks show that these subsidies do not create jobs, but enrich those getting the funds. Also by moving companies from one town to the other hurts the regional economy. This is more about corporate welfare then a job creating program. All these projects still would have been done without the subsidies instead all that was done was money being taken away from the tax payers of New Jersey for corporate tax breaks.

    Other top subsidies include:

    · $650 million to Xanadu/American Dream
    · $81 million to Goya Foods to move 5 miles and create 9 additional jobs
    · $42 million tax break to Campbell’s soup
    · $261 million for construction of Revel casino in Atlantic City
    · $102 million to Panasonic Corporation to move to Newark
    · $14 million to Bayer Healthcare
    · $12 million to Intrasphere Technologies

    The biggest corporate tax break has been to Xanadu/American Dream. There is $450 million coming from the state and another $200 from local government making it one of the biggest tax giveaways in the history of New Jersey. This is especially troubling since the state cannot even fund Brownfield remediation projects to clean up toxic sites around the state, however they are providing millions for another mall in New Jersey.

    “The problem is that the politicians forget it is our money when they give it away to take care of their special interest and developer friends leaving New Jersey residents with the bill,” said Tittel.

    # # #

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