How much does a tech bro cost? • Hacker News Board

Re: How much does a tech bro cost?

#21

Post by mynegation » Mon, Jul 02, 2018, 2:17 PM UTC

Naritai wrote: post #12

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)

That would be true if in case you refuse the cut, you continue to be employed at the same salary.

If the alternative is not to get anything (or severance), you would weigh it against future scenarios and calculate your scenarios based on some assumptions eg how many years you planned to stay employed and what is the expected time it will take you to find a new job and what are the costs of switching (house sale and moving costs) etc.

Re: How much does a tech bro cost?

#22

Post by dandare » Mon, Jul 02, 2018, 2:18 PM UTC

So nowadays I should be sorry for working in IT? I thought I am guilty enough for being white and male.

Re: How much does a tech bro cost?

#23

Post by evanmichaelkyle » Mon, Jul 02, 2018, 2:28 PM UTC

If not paying a tax is a gift then why not count total revenue as the amount given.

Re: How much does a tech bro cost?

#24

Post by pwinnski » Mon, Jul 02, 2018, 3:27 PM UTC

beejiu wrote: post #17

ordinaryperson wrote: post #15

Earlier quoted context omitted.

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.

I believe there is a difference, though.

Let's say that a regional government has $100 million in tax revenue, and that they have a balanced budget. Some company is considering relocating to the region, which would turn a piece of property currently contributing $100,000 revenue, or close to that, into a piece of property plus corporate tax and personal income taxes contributing $1.2 million, but with an increase in required spending of another $100,000, for a gain in net revenue of $1 million.

Offering a tax break less than $1 million costs nothing today, but still means an increase for the regional government, just a smaller one.

Offering a subsidy means dipping into a currently-balanced budget today, and making it up, probably, a year from now.

If all projections work out as expected, then several years from now there's probably no difference. But this, there could be a cash flow difference immediately.

Also, it's pretty easy to tell existing companies: tax breaks are for new development that increase value, and the break is essentially an 80% (or whatever) discount on the new taxes. It's hard to tell existing companies: we give subsidies to new companies but we'll continue to take you for granted.

At least that's how I suspect existing companies in a region tend to hear "subsidies."

Re: How much does a tech bro cost?

#25

Post by pwinnski » Mon, Jul 02, 2018, 3:31 PM UTC

dandare wrote: post #22

So nowadays I should be sorry for working in IT? I thought I am guilty enough for being white and male.

Do you fit the profile of a "tech bro?" If not, no need to be offended on behalf of that group. If so, sort yourself out.

Re: How much does a tech bro cost?

#26

Post by Naritai » Mon, Jul 02, 2018, 6:51 PM UTC

mynegation wrote: post #21

Naritai wrote: post #12

Earlier quoted context omitted.

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)

That would be true if in case you refuse the cut, you continue to be employed at the same salary. If the alternative is not to get anything (or severance), you would weigh it against future scenarios and calculate your scenarios based on some assumptions eg how many years you planned to stay employed and what is the expected time it will take you to find a new job and what are the costs of switching (house sale and m…

Those are other criticisms of the analysis, not the simple fact that credits are worth 1:1 in real dollars, which is what the original poster was objecting to.

Re: How much does a tech bro cost?

#27

Post by finnthehuman » Mon, Jul 02, 2018, 11:12 PM UTC

pwinnski wrote: post #25

dandare wrote: post #22

So nowadays I should be sorry for working in IT? I thought I am guilty enough for being white and male.

Do you fit the profile of a "tech bro?" If not, no need to be offended on behalf of that group. If so, sort yourself out.

And what exactly is the profile of a "tech bro?"

I've heard descriptions ranging all the way from stereotypical frat bro to any immigrant to the bay area that doesn't understand all the social conformity that's expected of them.

As far as I can tell, it's anyone on the wrong side of a culture that's very hostile to outsiders.