Halt the March to Fuel Poverty in Wyoming

A favorite corporate welfare scheme in Wyoming uses tax dollars to attract private companies to the state. One headline-grabbing scheme involves tax breaks and grants for data center attraction. When spinning the benefits of these subsidies, politicians make effusive claims to taxpayers, raving on about diversifying the economy, creating jobs, boosting the construction industry, increasing economic activity during slumps, generating tax dollars in the state, and/or increase productivity. For some reason, the flag, apple pie and for the children are left off this list.

As a matter of fact, Microsoft Corporation's datacenter provides a good example of a large project handout offering big ribbon cutting photo ops for politicians and financial gains for a company that has billions of dollars for "excess cash" on its books, but one that comes with hidden costs to the rest of us.

Although politicians leave the cost of corporate welfare out of their rhetoric, it doesn't mean everyone is taken in by the spin. But do the people of Wyoming think handouts to private businesses benefit them?

The Wyoming Liberty Group decided to find out. Its June 2015, survey of 500 potential Wyoming voters included this question:

The Wyoming government gave Microsoft Corporation subsidies that cost taxpayers more than $380,000 per job to create 50 jobs in the City of Cheyenne. Considering the median income in Wyoming is $54,000, should the people of Wyoming continue to provide subsidies for job creation to companies like Microsoft?

Likely voters don't seem to be taken in. Fifty-five percent of respondents say subsidies for job creation to companies like Microsoft should stop, 24 percent say they should continue and 20 percent were unsure.

Party affiliation influenced these results, with 62 percent of Republicans saying handouts to data centers should stop, 17 percent that they should continue, but 21 percent were unsure. For Democrats, 42 percent said subsidies should stop, 35 percent of said they should continue and 23 percent were unsure.

But datacenters come with a big hidden cost that if better understood, would likely result in less uncertainty.

Wyoming Liberty Group also asked:

Data centers are large users of electricity so tend to be located in areas with low electricity costs. Large electricity use coupled with federal government policies to increase electricity rates means your family's electricity bill will rise. Are you willing to pay higher electricity costs to attract data centers to your community?

When it comes to a direct impact on the family budget, respondents show much more certainty. A large majority of respondents are unwilling to pay higher home electricity costs (62 percent) to attract datacenters to their community. Twenty-eight percent said they are willing to pay higher electricity costs and only 10 percent are unsure.

For Republicans, 70 percent are unwilling to pay higher electricity costs to attract data centers, with 19 percent willing and now only 10 percent unsure. Democrats are still more willing to pay higher home electricity cost to bring data centers to town, at 47 percent, but 43 percent are unwilling and only 9 percent unsure.

Given the greater impact of higher home electricity costs on low-income families, it comes as no surprise that lower income individuals are much less likely to support paying higher home electricity costs to fuel data centers. Of those making less than $50,000 annually, 72 percent are unwilling to pay higher home electricity costs, however 76 percent those making over $200,000 are willing to pay higher home electricity costs.

Data centers exemplify the hidden cost of corporate welfare as they will undoubtedly drive up a family's home heating cost, dooming many to fuel poverty. Instead of transferring money from productive industries to favored industries and harming families along the way, a better strategy would be to encourage entrepreneurship through tax reductions and the elimination of red tape. Businesses with good ideas can get private funding and don't need to line up at the trough.