Feeds

Dell knocks out North Carolina taxpayers in court

Lush package cleared

Top 5 reasons to deploy VMware with Tegile

Dell has won the first round of a legal slugfest disputing close to $300m in incentives awarded to the computer maker by North Carolina.

Judge Robert Hobgood of the Wake County Superior Court today tossed out a lawsuit backed by the non-profit North Carolina Institute for Constitutional Law (NCICL). The organization has been supporting seven citizens' quest to deem North Carolina's lucrative Dell package unconstitutional. The judge, however, found that NCICL failed to show how the Dell deal directly hurts the interests of the North Carolina residents.

"We are obviously disappointed by the ruling and anticipate filing an appeal in the case as soon as we have consulted with our clients and our Board of Directors." said Robert Orr, the executive director of NCICL. "However, we anticipated from the beginning of the litigation that the case would ultimately have to be decided at the appellate level and we look forward to presenting our arguments on the constitutionality of these acts at the next stage of the process."

North Carolina enticed Dell to build a new PC manufacturing plant by giving it a wide variety of perks, including tax incentives, roads to its factory and classes at local colleges that will teach students how to fix Dell gear.

The North Carolina package is pretty incredible when you consider the political leanings of Dell founder Michael Dell and CEO Kevin Rollins – both staunch Republicans – and the overall success of the company. You'd think a pair of wealthy Republicans would be the last to ask for government handouts just to run their business. It would seem the Dell Model isn't all about supply chain efficiency.

Some locals certainly think it's unfair, as Dell will enjoy price breaks and other perks that could create a tilted playing field. Dell, after all, already has its massive size on its side against smaller, local IT shops.

"This issue is not going away, either as a question of constitutional law or as a matter of public policy." Orr added. "All across the country and here in N.C. citizens are questioning these rapidly escalating hand-outs to the largest and wealthiest international corporations at the expense of smaller businesses and individuals who have to pick up the tax burden for those who don't pay there fair share." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.