54 ms·

Easy to imagine that generates $6k per job given wages and payroll taxes. Further, halo effects and construction act as multipliers on that.

pc86 8y ago
I don't think construction costs are a multiplier of payroll taxes as far as the city government is concerned, and the folks at Amazon making big money would be employed regardless. Yes, some people will move into NYC for these jobs, but many of them will just move from another NYC firm to Amazon, maybe for a small raise. It's very conceivable that the folks moving within NYC will have a payroll tax increase of less than $6k.
- throwaway5752 8y ago
  Unless the positions they leftto go to Amazon are made redundant, those will be refilled, also. You just take salary x jobs and apply tax regulations. That's the overall tax receipt effect. There are 25k additional jobs that are likely over 6 figures in salary. The construction jobs come from building out the space and necessary infrastructure upgrades are paid positions that often are contract. They aren't permanent but they count for additional tax revenue. As is the revenue of the jobs created by the spending from the additional HQ2 positions (25k jobs requires X new lunch locations, Y new fitness trainers, etc). That is the halo effect.
- bdhess 8y ago
  > It's very conceivable that the folks moving within NYC will have a payroll tax increase of less than $6k. But do we think the jobs that the new Amazon hires are vacating will go away? Seems probable that many of them will be backfilled, and potentially at a higher compensation rate than they were before, since there'll be more demand for software engineers in the market after Amazon has moved in.
- smileysteve 8y ago
  > Yes, some people will move into NYC for these jobs, but many of them will just move from another NYC firm to Amazon But if those other companies then have to fill the vacuum by hiring even more, then it's still a + per job; and arguably more because increased liquidity in the job market results in more competitive salaries.

pc86 8y ago

I don't think construction costs are a multiplier of payroll taxes as far as the city government is concerned, and the folks at Amazon making big money would be employed regardless. Yes, some people will move into NYC for these jobs, but many of them will just move from another NYC firm to Amazon, maybe for a small raise. It's very conceivable that the folks moving within NYC will have a payroll tax increase of less than $6k.

throwaway5752 8y ago
Unless the positions they leftto go to Amazon are made redundant, those will be refilled, also. You just take salary x jobs and apply tax regulations. That's the overall tax receipt effect. There are 25k additional jobs that are likely over 6 figures in salary. The construction jobs come from building out the space and necessary infrastructure upgrades are paid positions that often are contract. They aren't permanent but they count for additional tax revenue. As is the revenue of the jobs created by the spending from the additional HQ2 positions (25k jobs requires X new lunch locations, Y new fitness trainers, etc). That is the halo effect.
bdhess 8y ago
> It's very conceivable that the folks moving within NYC will have a payroll tax increase of less than $6k. But do we think the jobs that the new Amazon hires are vacating will go away? Seems probable that many of them will be backfilled, and potentially at a higher compensation rate than they were before, since there'll be more demand for software engineers in the market after Amazon has moved in.
smileysteve 8y ago
> Yes, some people will move into NYC for these jobs, but many of them will just move from another NYC firm to Amazon But if those other companies then have to fill the vacuum by hiring even more, then it's still a + per job; and arguably more because increased liquidity in the job market results in more competitive salaries.