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Thursday, August 14, 2014

More than a touch hypocritical of the Koch brothers, don't you think?

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Koch critical of incentives after taking millions from state
By Hannah Davis, August 13, 2014

Koch Industries recently spoke out against a proposed one percent sales tax increase in Wichita. If approved, part of the money from that tax would go to a jobs fund aimed at attracting businesses to Wichita.

Charles Koch told USA Today that "too many businesses focus on getting subsidies and mandates from government rather than creating value for customers." While Koch is critical of funding private business with public money the company accepted more than $4 million in 2004 as a part of a deal to bring one of its subsidiaries, INVISTA, to Wichita.

Koch received a $2.5 million dollar incentive package from the state and around $2 million dollars in forgivable loans from the city and county. As a part of the deal Koch had to bring 206 jobs to Wichita that paid more than $105,000. Koch held up its end of the deal, bringing in even more than the promised 206 positions, but that has not stopped the company from speaking out against a proposed fund dedicated to courting other companies in a similar fashion.

Koch issued this statement Wednesday saying "Koch has consistently opposed the creating of subsidies and incentives, and will continue to do so. INVISTA did receive state and local benefits from existing programs after relocating its headquarters to Kansas in 2004. We advocate for smaller government, fewer incentive programs, and lower tax rates for everyone."

Two years after the initial deal with Wichita, Sedgwick County and Kansas, Koch asked for, and got more money, from all three parties to bring even more jobs to Wichita.

In 2006, INVISTA received $170,000 from the state, $125,000 from city and another $125,000 from county. Koch received that money to bring 60 more positions to Wichita that pay an average of $80,000 per year.
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