AT&T Threatens Texas, Demands Huge New Tax Breaks As this site has noted many times in the past, telecom companies such as AT&T and Verizon receive innumerable government benefits for simply existing. They pay little to no federal taxes, they continue to receive massive tax breaks from most parts of the country and they continue to push the notion of broadband utopia if the broadband industry becomes even more deregulated.

Meanwhile, the telecom companies are keeping their capital spending flat and producing no actual job growth after receiving hundreds of millions of taxpayer dollars to poorly install and maintain local landlines. Why? Because they want to walk away from fixed-line networks to focus their attention on more profitable wireless. And now AT&T has a message for one city: Triple our tax benefits or else. According to the El Paso Times, AT&T wants their $50-million-a-year tax break to be tripled or else they may simply look elsewhere for spending: quote: "We can put some of these things in neighboring states and we can even put some of these things on the Canadian border and still serve Texas," Leslie Ward, AT&T's senior vice president for external affairs, told the Texas House Ways and Means Committee at a March 24 hearing." The AT&T rep then took things one step further, claiming that the telco is only tying to help Texas residents: quote: Ward said she was only trying to help Texas compete with other states that hand out such tax breaks. "I just want Texas to have every advantage," she said. But it gets better. As AT&T is asking for this increase, AT&T is also costing taxpayers in El Paso nearly $20 million due to AT&T being the worst offender when it comes to "getting its lines and equipment out of public rights of way" and "subjecting motorists to untold hours stuck in construction traffic."Thankfully, AT&T employed 110 lobbyists for this Legislative session in Texas to make sure that the politicians “understood” the issue. The AT&T rep then took things one step further, claiming that the telco is only tying toTexas residents:But it gets better. As AT&T is asking for this increase, AT&T is also costing taxpayers in El Paso nearly $20 million due to AT&T being the worst offender when it comes to "getting its lines and equipment out of public rights of way" and "subjecting motorists to untold hours stuck in construction traffic."Thankfully, AT&T employed 110 lobbyists for this Legislative session in Texas to make sure that the politicians “understood” the issue.







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Most recommended from 33 comments

moonpuppy (banned)

join:2000-08-21

Glen Burnie, MD 4 recommendations moonpuppy (banned) Member Texas....let them leave.



Here's an idea, head to Detroit and see how it goes there. Where are they going to go? Illinois? They tax everyone to the hilt there. California? Good luck with that.Here's an idea, head to Detroit and see how it goes there.

davidc502

join:2002-03-06

Mount Juliet, TN 1 edit 3 recommendations davidc502 Member I think this pretty much sums things up





To be serious for a moment, this is how business works these days. The government better give me what I want or else. This I do know.. Nobody messes with Texas, and if they feel as though they are being held over a barrel, AT&T will be doing less business in the area.

ValleyGuy

@sbcglobal.net 3 recommendations ValleyGuy Anon AT&T My DSL has been out twice this week for over six hours each time. Thanks AT&T. At least tech support was helpful.



The state should reject their demands and use some of the tax money to work on I-35 through downtown Austin. That rush hour traffic is horrendous.

karlmarx

join:2006-09-18

Moscow, ID 2 recommendations karlmarx Member What exactly DOES texas get for the tax break? They have no income tax, so, giving AT&T $150,000,000.00 won't increase their local tax take from employees. The 'average' property tax rate in Texas is around 1.5% of the value. As of 2014, AT&T had a TOTAL of $115,000,000.00 in real estate type assets. (That's in the world). If I do the math, that $150,000,000.00 TAX BREAK would mean they don't pay taxes on about 10,000,000,000.00 of real estate assets in texas. So, Texas is going to offer them $150,000,000.00 to offset a total texas tax bill of about $3,000,000.00. What's the other $147,000,000.00 for? Hookers and coke? Or maybe a puppy mill so that Psychopath Randall Stephenson can torture puppies 'just to see what happens". Texas, we know you are mostly idiots, but please understand why are you giving up $147,000,000.00 MORE than AT&T pays in taxes in texas every year?

Dominokat

"Hi"

Premium Member

join:2002-08-06

Boothbay, ME 2 recommendations Dominokat Premium Member F--- ATT I will never do anything or own anything with an ATT logo on it. shanghaista

join:2014-08-03

Canton, MA 2 recommendations shanghaista Member Call the Wahm-bulance Trying to explain how a $50 million tax break is affordable is one ridiculous notion...but to threaten to leave unless the state triples that?



God Bless America...



It's Texas, so it's probably gonna happen, but I (and everyone else that's reasonable I'd assume) wants to see if AT&T wants to spend money to "relocate". Call their bluff... MDBill

Premium Member

join:2012-05-20

Kensington, MD 2 recommendations MDBill Premium Member That's pretty ballsy of AT&T ... ... considering that Google Fiber is coming to Austin.

NO to ESPN

@zscaler.com 2 recommendations NO to ESPN Anon As a Citizen of Texas Run at & t out of town as a public nuisance. Works for other "organized" groups that try and extort money from the public.