Language Selection

English French German Italian Portuguese Spanish

Dell's N.C. plant the target of a lawsuit

Filed under
Legal

Attorneys with the North Carolina Institute for Constitutional Law (NCICL) are expected to file legal papers Thursday to challenge a record-setting package of tax breaks given to Dell to ensure that the No. 1 computer maker built a 527,000-square-foot facility in the middle of the state.

The state of North Carolina, the city of Winston-Salem, Forsyth County and three nonprofit organizations will also be named in the lawsuit, former North Carolina Supreme Court justice Robert Orr, who heads the NCICL, said in an interview Wednesday. The complaint is a declaratory judgment and asks the State Supreme Court in Raleigh to review whether Dell's package deal violates the U.S. Constitution's commerce clause, which says Congress (and by extension, the states) cannot make laws that favor commerce in one state over commerce in another.

The North Carolina General Assembly authorized a record $242 million in tax incentives for Dell back in November 2004. That was followed by an additional $37.2 million in subsidies from Winston-Salem and Forsyth County officials.

Though local and state governments often work together to entice midsize and large corporations to set up shop in their communities, Dell's deal is unique in that it's the largest in state history.

Pharmaceutical giant Merck received a substantial tax incentive package in early 2004 when it moved out of New Jersey, Orr said. Semiconductor manufacturer Cree brokered a deal with officials in the state's celebrated Research Triangle Park, when the company hinted that it would like to move north to Virginia.

Dell's deal came at about the same time the 6th U.S. Circuit Court of Appeals ruled that a tax credit given by the state of Ohio to DaimlerChrysler was in violation of the federal commerce rules.

Orr said he and his group are not against Dell moving in; they just question the methodology.

"The concern is that Dell comes in and says they don't want to pay taxes for the next 20 years in a state where other companies are doing their part," Orr said. "We want them to complete their project in North Carolina, but we want them to pay their fair share to the state."

Dell spokesman David Frink would not comment on how the incentives break down on a yearly basis but said the tax credits Dell is receiving are tied to the company's performance.

Full Story.

More in Tux Machines

Security News

  • Wednesday's security updates
  • Secure your Elasticsearch cluster and avoid ransomware
    Last week, news came out that unprotected MongoDB databases are being actively compromised: content copied and replaced by a message asking for a ransom to get it back. As The Register reports: Elasticsearch is next. Protecting access to Elasticsearch by a firewall is not always possible. But even in environments where it is possible, many admins are not protecting their databases. Even if you cannot use a firewall, you can secure connection to Elasticsearch by using encryption. Elasticsearch by itself does not provide any authentication or encryption possibilities. Still, there are many third-party solutions available, each with its own drawbacks and advantages.
  • Resolve to Follow These 8 Steps for Better Data Security in 2017
    Getting physically fit is a typical New Year's resolution. Given that most of us spend more time online than in a gym, the start of the new year also might be a great time to improve your security “fitness.” As with physical fitness challenges, the biggest issue with digital security is always stagnation. That is, if you don't move and don't change, atrophy sets in. In physical fitness, atrophy is a function of muscles not being exercised. In digital fitness, security risks increase when you fail to change passwords, update network systems and adopt improved security technology. Before long, your IT systems literally become a “sitting duck.” Given the volume of data breaches that occurred in 2016, it is highly likely that everyone reading this has had at least one breach of their accounts compromised in some way, such as their Yahoo data account. Hackers somewhere may have one of the passwords you’ve used at one point to access a particular site or service. If you're still using that same password somewhere, in a way that can connect that account to you, that's a non-trivial risk. Changing passwords is the first of eight security resolutions that can help to improve your online security fitness in 2017. Click through this eWEEK slide show to discover the rest.
  • Pwn2Own 2017 Takes Aim at Linux, Servers and Web Browsers
    10th anniversary edition of Pwn2Own hacking contest offers over $1M in prize money to security researchers across a long list of targets including Virtual Machines, servers, enterprise applications and web browsers. Over the last decade, the Zero Day Initiative's (ZDI) annual Pwn2Own competition has emerged to become one of the premiere events on the information security calendar and the 2017 edition does not look to be any different. For the tenth anniversary of the Pwn2Own contest, ZDI, now owned and operated by Trend Micro, is going farther than ever before, with more targets and more prize money available for security researchers to claim by successfully executing zero-day exploits.
  • 'Factorio' is another game that was being hit by key scammers
    In another case of scammers trying to buy keys with often stolen credit cards to sell on websites like G2A, the developers of 'Factorio' have written about their experience with it (and other stuff too).

Red Hat News

Development News: LLVM, New Releases, and GCC

PulseAudio 10 and Virtual GPU in Linux

  • PulseAudio 10 Coming Soon, Using Memfd Shared Memory By Default
    It's been a half year since the debut of PulseAudio 9.0 while the release of PulseAudio 10 is coming soon. PulseAudio 9.99.1 development release was tagged earlier this month, then usually after x.99.2 marks the official release, so it won't be much longer now before seeing PulseAudio 10.0 begin to appear in Linux distributions.
  • Experimenting With Virtual GPU Support On Linux 4.10 + Libvirt
    With the Linux 4.10 kernel having initial but limited Intel Graphics Virtualization Tech support, you can begin playing with the experimental virtual GPU support using the upstream kernel and libvirt.