Unformatted text preview: be gone by Monday morning.”
IBP also benefited enormously from the legislation. Its corporate headquarters was located in Dakota City, Nebraska. One study has
suggested that after the revision of the state’s tax code every new job that ConAgra and IBP created there was backed by a taxpayer subsidy of
between $13,000 and $23,000. Thanks to the 1987 legislation, IBP paid no corporate taxes in Nebraska for the next decade. Its executives
paid state income taxes at a maximum rate of 7 percent. Despite all these financial benefits, IBP moved its headquarters out of Nebraska in
1997, relocating in South Dakota, a state with no corporate taxes — and no personal income tax. Robert L. Peterson, the chairman of IBP,
said that moving to South Dakota was like giving his employees a 7 percent raise. “The move shows you how ungrateful corporate tax-break
beneficiaries are,” Don Weseley, a Nebraska state senator, told the Omaha World-Herald. “They take whatever you give them and then, if
there’s a better offe...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08