41–50 of 359 posts
Earlier quoted context omitted.
Well, each NYC resident pays 48000 one time to get back 30000 per year for 10 years is not something that HN would upvote into the front page.
$48,000 is the cost per job, not the cost per resident.
It's also unfair for the smaller players, they never get the same kind of treatment.
for Amazon its seemingly a PR nightmare versus just quietly leasing some large amount of office space in satellite locations. Hope the incentives are worth it.
the interesting thing to me about HQ2 is its also a wealth transfer from future workers to Amazon the company which is facilitated/financed by the local government via taxes. They're selling future worker income/sales tax to the government.
This is such a great deal for NYC As the article says, they give up $1.5B over 10 years, but then get "Projected incremental tax revenue of more than $10 billion over 20 years." I dont know where that comes from but the payroll and property taxes paid by 25k employees dwarves the incentives. The most important part is it cements NYC as the main tech center on the East Coast. That is invaluable. EDIT: I wonder if NYC…
[disclosure - I work at Amazon, but have no internal information whatsoever.] This is over 10 years, so ~$5k/job/yr. For reference, economic development incentives for corporate relocations are commonly $20k-75k per job, and often for jobs paying much less than Amazon is expected to pay HQ2.5 employees. Also, I believe that Amazon will receive tax rebates based on the number of jobs created over time, which is better…
It is over 10 years per job. That will ideally by tax by an amazon employee over 5 years. Doesn't reflect the passive economic growth and indirect jobs that gets created over the time. Also, Amazon and the new Google's expansion will invoke chain reaction in terms of tech activity and new start-up's.
I feel like each Amazon employee will pay way more than that in taxes over 10 years, so this is just basic investment. Pay $48,000 over 10 years to get $30,000 a year forever. Seems smart.
This is such a great deal for NYC As the article says, they give up $1.5B over 10 years, but then get "Projected incremental tax revenue of more than $10 billion over 20 years." I dont know where that comes from but the payroll and property taxes paid by 25k employees dwarves the incentives. The most important part is it cements NYC as the main tech center on the East Coast. That is invaluable. EDIT: I wonder if NYC…
For the last decade Cuomo has been giving subsidy after subsidy, tax break after tax break, to corporations from Long Island to upstate New York. Each one came with projected revenues and gains, and each and every one failed miserably and ended up costing NY taxpayers countless billions - while most of the corporations walked away with a profit.
https://www.niagara-gazette.com/news/local_news/state-of-sub...
https://nypost.com/2018/07/21/cuomo-has-wasted-billions-and-...
Amazon could have chosen anywhere, somewhere where they could make a difference, create jobs, kick-start the economy. Serious bummer.
In 96', when Apatosaurus still roamed the earth and "Atari" was a thing, Israel granted Intel 600MM$ to build FAB18 in the desert. Over a decade later, an official government report concluded that the country lost some 400MM$ on the move. Bottom line, big-corps can extort states or cities and bid for ridiculous tax incentives that never pay off. I feel sorry for the residents of NY and the bad deal imposed on them.
Who was Israel harming by making that decision?
Is a deal made freely and with complete information between two parties always "extortion", if it turns out with the benefit of hindsight not to have turned out to be in the best interests of one of the parties?