Does anyone have any more info about the expansion in Seattle? I'm wondering if they are going to get more space in the same building or are looking to move.
Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
71–80 of 180 posts
Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#72Austin makes a ton of sense given the incredible amount of chip design talent in the area.
Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#73Tangentially, has apple moved any kind of foreign earnings to the US after the recent tax cuts? Also, 90000 thats an impressively low number of jobs
90,000 is not an impressively low number of jobs. It makes Apple one of the 40-50 largest employers in the US and one of the five largest US tech employers. Back in January Apple publicly announced their plans for repatriation. While Apple doesn't give routine updates on exactly what it's doing with every dollar of cash it holds, they've stopped accumulating debt and have begun reducing it. Previously, for years, the…
You 're right, it's not. Apple is #7 in revenue / employee
https://www.businessinsider.com/apple-facebook-alphabet-most...
Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#74Earlier quoted context omitted.
If they are adding people to your community- what roads will these new people be driving on? What schools will their children be attending? The additional revenue is not being added in a vacuum.
The new people will be paying sales taxes, property taxes and state income taxes.
Pertinent to the headline of this article: Texas has no state income tax.
Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#75Earlier quoted context omitted.
Which given FANG salaries they will do. And the state and NYC preying in aid the problems with its tube system is deeply cynical, maybe try to be 1 less corrupt and competent
$25k in state and local taxes would be high even for FANG in NYC
They'll pay that in income taxes alone in 2 years.
Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#76Big corps love to brag about "adding jobs", but don't like to brag about the "tax incentives" they are getting. There are usually huge costs for the whole community. Austin tax incentives for Apple seem to be relatively small [1], but Foxconn factory in Wisconsin is an extreme case. I highly recommend the Replay All podcast episode on this [2][3] [1] https://www.statesman.com/news/20120901/austin-council-oks-8... [2]…
I saw this video about LA a few days ago and it is very sad how these tax incentives are ruining entire states. [1] [1] https://www.youtube.com/watch?v=RWTic9btP38
If one state didn't offer a tax break, then another would and win the business. There are 50 states, and most of them compete for businesses with tax incentives fairly competitively.
Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#77Earlier quoted context omitted.
Though usually not enough to make up the difference in incentives. If we take the Amazon NY incentives at face value, each employee needs to pay $25k in taxes to make up the difference just on the initial tax break alone. That doesn’t count extra expenditures for expanded public transportation or nearby development. That’s also if amazon hires the proposed 40k new employees on day one, which they won’t. There’s a goo…
Which given FANG salaries they will do. And the state and NYC preying in aid the problems with its tube system is deeply cynical, maybe try to be 1 less corrupt and competent
The highest marginal tax rate in NYC is 3.65%. The effective rate on a $140,000 salary is about 2.6%. Leaving a local tax liability of about $3500.
On the same income, NY state has a marginal rate of 6.45% and an effective rate of about 4.3%, for a liability of $6,000.
So, in year one, that's a bit over $9000 in revenue from a highly compensated employee. If the $25k figure stated above it true and a one-time incentive, it takes 2.5-3 years to pay off. Employees earning less than $140k will take 3+ years to pay off. If the incentives are recurring in any way, then the payoff is pushed out even more.
But, as mentioned, the employee doesn't just have to "pay back" the initial incentive, she has to produce tax revenue to pay for increased services and infrastructure demand, pushing the timeline out even further.
Anyway, the NYC deal doesn't sound to bad. Even at a 5-8 year pay-off, if the positions are relatively long-lived, it's a long-term positive. But, when we consider the Foxconn deal in the Mid-West, ouch, that one's going to sting the local community for a long time.
Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#78Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#79Earlier quoted context omitted.
it's weird to frame net new revenue as a "huge cost the whole community" Taking less money from someone who is building a business in your area is not a cost. They have a choice on where to build, and tax burden is one of many factors in that choice.
If they are adding people to your community- what roads will these new people be driving on? What schools will their children be attending? The additional revenue is not being added in a vacuum.
Aren't roads funded from gas tax?
And schools are almost entirely paid by the local property taxes, at least in the communities where most of Apple employees will live.
Re: Apple to build campus in Austin and sites in Seattle, San Diego and Culver City
#80Earlier quoted context omitted.
it's weird to frame net new revenue as a "huge cost the whole community" Taking less money from someone who is building a business in your area is not a cost. They have a choice on where to build, and tax burden is one of many factors in that choice.
>"Taking less money from someone who is building a business in your area is not a cost" Let's look at what that someone will be expecting of your area - working roads, a fire department, a police department, public transportation, a school system, a library, a park, emergency services. How is an influx of of potentially much more people consuming those services not a cost?
That certainly is a cost. But it's not what the parent poster was saying... I'll bet the costs you speak of are covered by income taxes and the corporate tax, with a little leftover per employee (so - a large pot of extra money at the end of the day).