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These are property and sales tax abatements on property and sales that only exist because Tesla set up shop in Nevada. You can quibble about the length of the

These are property and sales tax abatements on property and sales that only exist because Tesla set up shop in Nevada. You can quibble about the length of the tax abatements (10 and 20 years), but the perceived "$1.3B gamble" is tax revenues that never existed.

bryanlarsen 11y ago
Property taxes are used to build infrastructure used by the taxpayers, such as roads, water & sewer connections, et cetera. Presumably they will be building such for Tesla, so they will be out some 'real money'.
- Avshalom 11y ago
  When VW moved into Chattanooga they got their own firestation, EMS dispatch and hospital for instance, that's of course in addition to the roads, water etc...
  - linkregister 11y ago
    Which is more than funded by the workers' property taxes, income taxes, and sales tax revenue.
    - hackbinary 11y ago
      Why should the 'workers' pay higher taxes, and the 'company' pay lower taxes? What makes that a morally just argument?
      - prostoalex 11y ago
        1) As Nevada has no personal income tax, workers' liability on that portion would be the same as company's - close to zero. 2) Property and local sales taxes are more likely to stay in the community, whereas the corporate taxes would be sent to Carson City and redistributed to who knows what. 3) Municipalities with strong and diverse property tax sources tend to be community-driven and citizen-oriented. Municipalities with single source of income coming from some corporate giant are incentivized to be pushovers for corporate agenda.
    - Avshalom 11y ago
      Even though those amenities weren't included in the original cost/benefit of the deal because VW sprung them on the City halfway through the process it still might have been covered by increased sales/property tax until it turned out that demand for the Passat had peak the year it opened and they had several rounds of layoffs in the following years.

bryanlarsen 11y ago

Property taxes are used to build infrastructure used by the taxpayers, such as roads, water & sewer connections, et cetera. Presumably they will be building such for Tesla, so they will be out some 'real money'.

Avshalom 11y ago
When VW moved into Chattanooga they got their own firestation, EMS dispatch and hospital for instance, that's of course in addition to the roads, water etc...
- linkregister 11y ago
  Which is more than funded by the workers' property taxes, income taxes, and sales tax revenue.
  - hackbinary 11y ago
    Why should the 'workers' pay higher taxes, and the 'company' pay lower taxes? What makes that a morally just argument?
    - prostoalex 11y ago
      1) As Nevada has no personal income tax, workers' liability on that portion would be the same as company's - close to zero. 2) Property and local sales taxes are more likely to stay in the community, whereas the corporate taxes would be sent to Carson City and redistributed to who knows what. 3) Municipalities with strong and diverse property tax sources tend to be community-driven and citizen-oriented. Municipalities with single source of income coming from some corporate giant are incentivized to be pushovers for corporate agenda.
  - Avshalom 11y ago
    Even though those amenities weren't included in the original cost/benefit of the deal because VW sprung them on the City halfway through the process it still might have been covered by increased sales/property tax until it turned out that demand for the Passat had peak the year it opened and they had several rounds of layoffs in the following years.