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How much does a tech bro cost?

theguardian.com

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Re: How much does a tech bro cost?

#11

Post by emodendroket »

dahdum wrote: post #8

Once again journalists willfully misleading the public by ignoring the difference between tax credits and actual cash outlay. They must know the difference, but clever tricks get more clicks than the truth ever does.

There's not really much difference.

Re: How much does a tech bro cost?

#12

Post by Naritai »

dahdum wrote: post #8

Once again journalists willfully misleading the public by ignoring the difference between tax credits and actual cash outlay. They must know the difference, but clever tricks get more clicks than the truth ever does.

Of all the criticisms one can make of this article, this is one of the weakest. If I agree to a $10k pay cut from my employer, that's functionally equivalent to me giving my employer $10k.

(and in the US at least, 'credits' are usually applied at the very end of the tax process, so have a real 1:1 value with dollars owed, as opposed to deductions which can have varying value)

Re: How much does a tech bro cost?

#13

Post by unquietcode »

While most people would argue that tax breaks and other subsidies can have outsized rewards in the long run, I think the disparity between these corporate handouts and the public service needs is striking. Cities are giving away hundreds of millions to companies which might not even deliver on their promises, while local programs with proven value are asking for funds in the range of half a million to several million and being denied. Resource allocation has never been our strong-suit as a society, but this is just depressing. Surely we can do better to balance the needs and desires of corporations with those of normal flesh-and-blood human beings?

Re: How much does a tech bro cost?

#15

Post by ordinaryperson »

1787 wrote: post #6

The "tech bro" angle is just clickbait. I am pretty sure that Foxconn, Tesla's Gigafactory, and a datacenter are not what is usually meant by "tech bro". Second, if cities believe that these tax breaks are good investments then there is little relationship between making those investments and putting money into other programs. Cities should have access to cheap-ish capital and future tax breaks seem like fairly favor…

It also conflates "tax breaks" with "subsidies".

Not charging you a fee is not the same thing as handing over cash.

Tax breaks are valuable, for sure, but I can't buy a bunch of F-35s with tax breaks.

Re: How much does a tech bro cost?

#16

Post by atomical »

1787 wrote: post #6

The "tech bro" angle is just clickbait. I am pretty sure that Foxconn, Tesla's Gigafactory, and a datacenter are not what is usually meant by "tech bro". Second, if cities believe that these tax breaks are good investments then there is little relationship between making those investments and putting money into other programs. Cities should have access to cheap-ish capital and future tax breaks seem like fairly favor…

It's sexist towards men that work in the industry. Don't just downvote. Leave a comment.

Re: How much does a tech bro cost?

#17

Post by beejiu »

ordinaryperson wrote: post #15
1787 wrote: post #6

The "tech bro" angle is just clickbait. I am pretty sure that Foxconn, Tesla's Gigafactory, and a datacenter are not what is usually meant by "tech bro". Second, if cities believe that these tax breaks are good investments then there is little relationship between making those investments and putting money into other programs. Cities should have access to cheap-ish capital and future tax breaks seem like fairly favor…

It also conflates "tax breaks" with "subsidies". Not charging you a fee is not the same thing as handing over cash. Tax breaks are valuable, for sure, but I can't buy a bunch of F-35s with tax breaks.

If individuals and small companies can also negotiate their own tax rates, you might be correct. Since they cannot, it is a subsidy. There is no difference between collecting X and giving Y back than collecting X - Y.

Re: How much does a tech bro cost?

#18

Post by jmuguy »

On the surface it seems ridiculous to give that much incentive for a data center but Apple has continued to invest in that location in Maiden. It employs a lot more than 50 people now, kind of wonder how much time the Guardian spent researching this piece.

https://www.bizjournals.com/charlotte/news/2017/01/18/new-ap...

Re: How much does a tech bro cost?

#20

Post by analog31 »

cornholio wrote: post #3

It would be helpful to distinguish between actual cash outlays and tax credits that kick in only when the company is producing and supposed to pay taxes. It's not unreasonable then to forego $0.5 million tax revenue for a long term, high tech manufacturing or engineering job that might generate another 5 jobs down the line. Not to mention the value of an environment that attracts other similar companies in the future…

I live in Wisconsin. We already have "tax increment financing," where a city can provide money that is offset by the expectation of increased property tax revenue when a site is developed.

The state already has negligible corporate taxes, so there's nothing left to give away, and the corporations still want more.

As part of the Foxconn deal, they will be exempt from a variety of environmental regulations, and from what I've read, flat panel display production is a dirty industry. They also have practically free reign on eminent domain, for instance by declaring someone's farm to be a slum so it can be seized on behalf of Foxconn.

So the freebies go beyond mere cash.

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