Tennessee Senator Marsha Blackburn is defending the state giving $30 million to Starbucks as corporate welfare despite opposition from both sides of the aisle, including Americans for Prosperity. Of course, one of her big contributors, Stuart McWhorter, actually cut the sweetheart deal for Starbucks on behalf of Tennessee.
Her main opponent in the Governor’s race, John Rose, has condemned the giveaway of taxpayer money to Starbucks.
Many have questioned who actually benefits from the deal besides Starbucks. What Tennessee law firm or firms negotiated the deal? What lobbyists are signed up (or will be) to represent them in the state or assisted in negotiating the deal? Was Marsha’s political consultant Ward Baker involved? Lots of questions, and very few answers. Certainly no transparency.
Marsha went on Memphis TV defending the $30 million payment to Starbucks in exchange for their promise to move 2000 jobs to Tennessee over the next five years. She made the rather bizarre argument that Tennessee will completely recoup the $30 million payment in just six months thanks to the “Payroll tax.”
First of all, the promised 2000 employees won’t show up, if at all, for years.
More importantly, Tennessee doesn’t have a state payroll tax to collect from Starbucks. Marsha has famously claimed that she stopped Tennessee from having a state income tax, and her supporters have implied that she did it single-handedly. She was definitely a leader in stopping the state income tax 25 years ago. And Tennessee still doesn’t have a state income tax. Nor a state payroll tax. Marsha should know that.
So where does she think the mysterious $30 million payoff over the “next six months” is coming from? Or is she just repeating talking points given to her by her handlers?
Steve Gill is editor and publisher of TriStar Daily.
