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> Well said: why does a tax break bother people so much? Because it's their money being handed to a trillion dollar company that has no need for a discount?
A tax break isn't handing anyone money.
If the IRS gives me a 10% tax break, I have more money, and the government has less, right?
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Well said: why does a tax break bother people so much? That feels pretty populist to me: data centers of this magnitude offer a ton of economic benefits to the area and the state, 3.3B in tax breaks are the price to pay to incentivize them to bring the business to the area, which will then provide a net positive financial benefit. I can see plenty of problems with data center construction that should definitely be ad…
> Well said: why does a tax break bother people so much? Several reasons. It distorts the market for one. One tax rate for me, another for thee. That's government picking favorites. Generally regarded as a bad thing.
What's the value add for states and cities? data centers don't create a lot of long term jobs, the skills required are highly specialized and will probably hire out of state. the construction itself will likely hire locals but that can't go on forever. these centers are loud, increase power costs and water usage. feels like short term job creation program at best.
No one likes to see big companies avoid taxes. But I don't see what other options are available for states to compete with each other if not through tax breaks. Edit: I suppose if you ban tax breaks, if a state wants to be competitive, they still can but through modifying the tax code for everyone instead of giving certain people exceptions. That doesn't seem like a terrible alternative..
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Seems only fair that we pay our taxes when those are used to subsidize such lofty endeavours.
I think there are plenty of issues with data center construction but there are real economic benefits here. If there weren’t it would be pretty easy for states to thwart them. You would see the leverage switch and companies paying states incentives.
Will the earth’s climate get tax breaks too? What about the people living around these and paying for taxes. What about zero sum game we have here.
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A tax break isn't handing anyone money.
Sure it is. It's more money in Facebook's pocket, and less in the local coffers. Either services get cut, or residents pay more. If the IRS gives me a 10% tax break, I have more money, and the government has less, right?
Residents aren't paying more for anything and no services are being cut.
Will the earth’s climate get tax breaks too? What about the people living around these and paying for taxes. What about zero sum game we have here.
Earlier quoted context omitted.
Sure it is. It's more money in Facebook's pocket, and less in the local coffers. Either services get cut, or residents pay more. If the IRS gives me a 10% tax break, I have more money, and the government has less, right?
But it's not less in local coffers. If the incentive was not given, the datacenter would not be built there. The state government wants it to be built there to increase economic activity in their state. Residents aren't paying more for anything and no services are being cut.
The local government is giving a local tax break, which comes out of their local tax revenue.
> If the incentive was not given, the datacenter would not be built there.
Objection, your honor, assuming facts not in evidence!
(Nor are the incentives any sort of guarantee. https://www.cnbc.com/2021/04/21/foxconn-mostly-abandons-10-b...)
> Residents aren't paying more for anything and no services are being cut.
They are receiving less tax revenue than they would have otherwise had to use on their services.