Start-up NY: 100% Tax-Free for 10 Years? • Hacker News Board

Re: Start-up NY: 100% Tax-Free for 10 Years?

#91

Post by gohrt » Thu, Dec 19, 2013, 7:33 AM UTC

gametheoretic wrote: post #67

dworin wrote: post #39

The hidden fine print is that you have to affiliate with a university and support that university's mission. I wonder how loose they'll be in interpreting that support. Does "providing internships to students every summer" count, or will it need to be more substantial?

The following is not sarcastic: be more cynical. What would you want, if you were a university president? Startup branding. They want you to walk around talking about how SUNY-whatever is where the startup culture is at.

a href="http://i-lab.harvard.edu/experiential-learning/startup-scram... Whatever do you mean? /a

Re: Start-up NY: 100% Tax-Free for 10 Years?

#92

Post by goldenkey » Thu, Dec 19, 2013, 8:39 AM UTC

gaadd33 wrote: post #74

joonix wrote: post #69

Earlier quoted context omitted.

Nonsense. New York is not nearly as bad as SF for rent. I know someone who just rented a studio in the heart of lower Manhattan for $1500 and that includes heat and water. On top of that you don't need a car or Uber or any of that. Unlimited subway pass and/or a bike or CitiBike membership and you're set. That is absolutely manageable for a tech professional and well worth it for all the benefits of living here and a…

$1500? Sounds like they got lucky. Streeteasy shows only 3 apartments for rent for less than $1500 and one is an SRO. ( http://streeteasy.com/nyc/for-rent/downtown/rental_type:frbo... ) I'm sure you can find a really tiny non legal space in Chinatown or similar but I'm not sure I would call that a bargain.

And chinatown is chock full of roaches and rats due to the restaurants dumping cooking oil and garbage into the streets. You get what you pay for.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#93

Post by melvinram » Thu, Dec 19, 2013, 10:37 AM UTC

mikekij wrote: post #89

lsc wrote: post #85

Earlier quoted context omitted.

>As a startup CEO, I don't really care about income taxes. Most tech startups get acquired or fail before profitability. I care about personal capital gains tax. Give me a personal capital gains tax exemption and I'm in. I love Hudson. only if you are rich enough that you don't have to pay yourself. The rest of us have gotta pay income taxes on all the money we take out to live on until we sell out. Really, it doesn'…

I didn't get the impression that this tax break was on personal income tax, but corporate income tax. So you would only get a corporate income tax break if your company has a profit. I was recently in the situation where I had to pay a ton of capital gains tax on an acquisition, even though my company never really had a profit, and therefore paid no corporate income tax. But I agree. Not having to pay personal income…

It's both.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#94

Post by davidw » Thu, Dec 19, 2013, 10:47 AM UTC

Why not just take the same money, and reduce taxes for all businesses, rather than favoring this, that or the other sector.

Italy does this a lot: incentives for biotech startups founded by Sardinian women under 35, or German speaking Italians over 50 with shoe companies, or whatever other silly thing some politician decides is a good idea. It creates incentives for people who are adept at navigating the bureaucracy and finding where the government money is directed, rather than simply getting on with business.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#95

Post by tolmasky » Thu, Dec 19, 2013, 10:53 AM UTC

davidw wrote: post #94

Why not just take the same money, and reduce taxes for all businesses, rather than favoring this, that or the other sector. Italy does this a lot: incentives for biotech startups founded by Sardinian women under 35, or German speaking Italians over 50 with shoe companies, or whatever other silly thing some politician decides is a good idea. It creates incentives for people who are adept at navigating the bureaucracy…

Because tax breaks are the products politicians sell: http://youtu.be/TruCIPy79w8 (relevant portion about 5:28 in but it's all worth watching)

Re: Start-up NY: 100% Tax-Free for 10 Years?

#96

Post by dirktheman » Thu, Dec 19, 2013, 11:00 AM UTC

notastartup wrote: post #62

PaulHoule wrote: post #6

As a New Yorker, I think this sucks. We already pay high taxes and if somebody gets a tax break that means all the rest of us will pay even more.

it can't be higher than Vancouver, BC. Tax Payable on Earning 150k: $$20,127 CAD (New York) $45,624 CAD (Vancouver, BC) 1.07 (USD/CAD)

Where I live (The Netherlands) that would be 52%, so $78,000. Sweden is even worse with 57% ($85,500), but the Swedish have way better incentives like (almost) free education/healthcare etc.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#97

Post by cpfohl » Thu, Dec 19, 2013, 12:47 PM UTC

rjsamson wrote: post #79

jrockway wrote: post #11

Don't start your startup in New York or San Francisco. Rents here are twice what they are in more reasonable parts of the country, and you get absolutely nothing in exchange except maybe a slightly-less-shallow talent pool. (Oh, and cockroaches. Lots of cockroaches.) Your employees will be paid twice as well, and your offices will be twice as nice... for free... if you locate yourself outside the expensive parts of t…

This program is largely focused on economic development in New York State outside of NYC. In NYC the program actually carries additional restrictions, while in Upstate NY it is easier for Universities to apply to designate space, and for companies be approved. Unlike NYC, in Upstate NY rent and required salaries are lower - it's a great place to start a company (though I may be a bit biased).

Forget rent. In Upstate New York buying is cheaper than renting. There's an idea for a starting bonus: we'll give you the downpayment on your house.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#98

Post by jrockway » Thu, Dec 19, 2013, 12:48 PM UTC

untog wrote: post #41

jrockway wrote: post #13

Earlier quoted context omitted.

Make taxes higher, I say. I hope to one day have a New York City entirely funded by its full-time residents, so we can stop pretending to care about tourists.

Why? What about tourists makes New York so intolerable for you? Is your desk in Times Square?

Their collective inability to stay on the pedestrian side of the Brooklyn Bridge. One time, I saw a couple getting married in the bike lane! WTF?

Re: Start-up NY: 100% Tax-Free for 10 Years?

#99

Post by cpfohl » Thu, Dec 19, 2013, 12:52 PM UTC

skizm wrote: post #43

Can I freelance for 10 years tax free in NY if I incorporate?

Yes, if you're: at a university. Oh, and if you support the University's mission. Oh, and if the University decides to allow it. Did you read the article? It wouldn't be New York State if there weren't 173 rules and regulations that had to be met before you were eligible.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#100

Post by cpfohl » Thu, Dec 19, 2013, 12:54 PM UTC

greenyoda wrote: post #19

raheemm wrote: post #12

Earlier quoted context omitted.

Better the tax breaks go to startups and new businesses than to bureaucracies and large corps.

There currently seems to be no shortage of startups in NYC, even without these tax breaks. And if a company only comes to NY because of the tax breaks, they might leave when the tax breaks expire.

I had the same thought until I realized that Human capital is a lot harder to move than buildings. Yes, it's possible to move a company away from a city, but 10 years is a long time. Long enough that a company would lose a ton of employees by moving out of state.