Tuesday, December 29, 2015
NM Tax structure depends on for profit LANL operation
Now that the local politicians have tasted tax riches, there is slim to no chance that the contract will be allowed to go to a nonprofit operator.
http://www.dchieftain.com/news/state/up-for-bid-nuke-lab-contract-could-affect-tax-revenues/article_4254145e-8273-5bc5-bbac-f3b1d48f6e04.html
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15 comments:
It began with the Greening of the Valley, now it's the entire state.
The contract will probably go to benefit those who make the best campaign contributions by those who haven't already been ruled out as incompetent. NM state government doesn't have the kind of pull on DC officials as well heeled university and business officials. This doesn't make the odds of a not-for-profit contract good, but it it remains possible and the best hope for the viability of LANL. NM lived without the LANS gross receipts tax revenue under sixty plus years of UC management. They'll get over it if LANS is replaced by a not-for-profit contactor, as the tax-paying jobs shed by LANL to pay the taxes and award fees may return to offset the losses.
The lavish spending of the local politicians can not be rolled back now that it is part of their reason to exist. Get used to it, because the tax money will continue forever, just like all welfare from the federal government. Even if, by some ultra low probability event, the contract is handed to a nonprofit you can bet that there will be clear provisions to keep sending 100M plus per year to the locals. Once they got on the federal welfare rolls, they are now on them to stay.
This may be the "downfall" of Los Alamos as a real town, something it has tried to achieve for 60 plus years. There for awhile it looked like we could support the town without LANL, but things are going south fast. Just look around the business are closing< Smiths will be the only viable business.
By the way Los Alamos was never intended to be a vibrant town, some have tried to make into into one, mostly because they smell money but so far even CB Fox will be closing.....
Ha, Ha
Up yours, liberals. You'll need to try to take something from someone else. Get out the sob story towels. And the earplugs. Hide your wallets.
This may be the "downfall" of Los Alamos as a real town
There was a town before LANS and there will be a town after LANS.
"They'll get over it if LANS is replaced by a not-for-profit contactor, as the tax-paying jobs shed by LANL to pay the taxes and award fees may return to offset the losses. "
Outstanding point, LANL shrank in size after the contract change.
Anonymous said...
This may be the "downfall" of Los Alamos as a real town
There was a town before LANS and there will be a town after LANS.
December 30, 2015 at 11:06 AM
Correction:
There was a company-town before LANS and there will be a company-town after LANS.
(Just like in the hills of West Virginia)
"They'll get over it if LANS is replaced by a not-for-profit contactor, as the tax-paying jobs shed by LANL to pay the taxes and award fees may return to offset the losses. "
Outstanding point, LANL shrank in size after the contract change.
December 30, 2015 at 11:07 AM
Doesn't matter who the next contractor is, LANL will shrink once again in the next transition.
"Doesn't matter who the next contractor is, LANL will shrink once again in the next transition.
December 30, 2015 at 3:48 PM"
Doubt it, you need to look at demographics and money. If they get a non-profit LANL will grow.
"There was a company-town before LANS and there will be a company-town after LANS.
(Just like in the hills of West Virginia)"
Yes and your point is....?
The tax money is too important to the local politicians to ever let it go, now that they have tasted it. Even if the next contractor is a nonprofit, the locals will find a way to get 100M$ ear-marked to be sent to local economic aid. That is just the way it is with federal welfare and once you get on the roll, you never come off of it. It just doesn't matter who runs the Lab next, the workforce will continue to shrink.
You have to look at the facts and draw the conclusion that the 100M is going to continue to flow to the local community. Call it a "tax" if the next Lab contractor is for profit, or call it a "set aside" if they turn out to be a nonprofit. Once the locals saw the money it is here to stay. Either way, the Lab workforce will contract more in this transition.
"You have to look at the facts and draw the conclusion that the 100M is going to continue to flow to the local community. Call it a "tax" if the next Lab contractor is for profit, or call it a "set aside" if they turn out to be a nonprofit. Once the locals saw the money it is here to stay. Either way, the Lab workforce will contract more in this transition."
First of all you have no idea if NM will keep the 100 mill. I agree that it is a strong possibility but not certain. However the for profit model cost way more them the other 100 million lab fee as the number of managers ballooned along with their salaries. If this is removed there will be more money to hire people. An obvious statement is that the lab would shrink some at the transitions as it would be a natural point for people to retire, however soon afterwords there would be large increase in hiring so the lab would grow in size again.
At the end of the day what the US needs to realize is that these labs house a collection of the best scientists and engineers on the planet. Maybe our needs have changed with regard to weapons, but the energy and national security problems that face us are just as daunting as nuclear threats in the cold war era.
To throw away an extremely talented group of scientists would be ridiculous. The labs have slowly made changes toward other mission spaces, and that is the right thing to do. Put these minds to work on the problems of the day.
Every complacent, lazy citizen makes a claim for the golden-egg goose.
The productive produce and collect payment for their output. Are NM citizens productive or complacent?
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