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That certainly is a cost. But it's not what the parent poster was saying... I'll bet the costs you speak of are covered by income taxes and the corporate tax, w

That certainly is a cost. But it's not what the parent poster was saying... I'll bet the costs you speak of are covered by income taxes and the corporate tax, with a little leftover per employee (so - a large pot of extra money at the end of the day).

karmajunkie 8y ago
No income taxes in Texas.
bogomipz 8y ago
>" I'll bet the costs you speak of are covered by income taxes and the corporate tax, with a little leftover per employee (so - a large pot of extra money at the end of the day)." So you believe all local governments run a budget surplus? You can't be serious. You realize there operating expenses and capital expenses right? Maintaining an existing bridge and building aa new bridge are very different budgetary consideration.
- kiallmacinnes 8y ago
  Of course not.. But .. What on earth does that have to do with what amounts to giving a quantity discount to large employers? Yes, if they didn't give a discount, and somehow managed to keep the "sale" anyway, there would be more money in the register - great! However the reality is that without the discount, there is no sale, and no additional money in the register. It may be that the discount is too great, that's entirely possible. I don't think we have the info to judge this.
  - bogomipz 8y ago
    >"But .. What on earth does that have to do with what amounts to giving a quantity discount to large employers?" It's mostly certainly not a "quantity discount." These corporation aren't "buying" anything from these cities. If Apple comes in sets up shop on 100 acre campus in your town and gets tax breaks to do so then your town forfeits the equivalent tax revenue another company would have paid for the same parcel of land. There is a huge opportunity cost involved, nothing is free.
    - kiallmacinnes 8y ago
      > It's mostly certainly not a "quantity discount." These corporation aren't "buying" anything from these cities. The city is selling its land (in quantity) and talent pool (in quantity), and is giving a tax break (a discount). > If Apple comes in sets up shop on 100 acre campus in your town and gets tax breaks to do so then your town forfeits the equivalent tax revenue another company would have paid for the same parcel of land. If Bestbuy sells Microsoft 1000 laptops at a 30% discount, Bestbuy has forfeited the revenue they would have made from doing 1000 single unit+no discount sales. Despite the business making far less than maximum revenue, businesses choose to do this all the time as it created greater value for them in the end. Cities are doing essentially the same thing with big companies. You just can't look at a discount and naively equate that to a $ loss in the city bank account, just as a business can't do this when they sell a physical good.
      - bogomipz 8y ago
        >"The city is selling its land (in quantity) and talent pool" No the city is not selling land. Where in that article is it stated that Austin is selling Apple land? The city isn't "selling" it's talent pool. Companies will always gravitate towards where there's a steady supply of talent. >If Bestbuy sells Microsoft 1000 laptops at a 30% discount" Yeah your analogy is absurd, taxes are a "recurring" revenue stream for a city. It's not at all similar to a single retail transaction. >"You just can't look at a discount and naively equate that" It's not a "discount", there are no goods being sold. Future recurring revenue is being forfeited. And when there's a future budgetary short fall(and there alway is) it will be made up by the individual tax payer.
longerthoughts 8y ago
You're making drastic assumptions about the relative quantities of your variables. It's feasible that the math works out but far from guaranteed.
- kiallmacinnes 8y ago
  I am, I tried to make that clear with the "I'll bet..".. we don't have anywhere near enough insight to know for sure!

karmajunkie 8y ago

No income taxes in Texas.

bogomipz 8y ago

>" I'll bet the costs you speak of are covered by income taxes and the corporate tax, with a little leftover per employee (so - a large pot of extra money at the end of the day)." So you believe all local governments run a budget surplus? You can't be serious. You realize there operating expenses and capital expenses right? Maintaining an existing bridge and building aa new bridge are very different budgetary consideration.

kiallmacinnes 8y ago
Of course not.. But .. What on earth does that have to do with what amounts to giving a quantity discount to large employers? Yes, if they didn't give a discount, and somehow managed to keep the "sale" anyway, there would be more money in the register - great! However the reality is that without the discount, there is no sale, and no additional money in the register. It may be that the discount is too great, that's entirely possible. I don't think we have the info to judge this.
- bogomipz 8y ago
  >"But .. What on earth does that have to do with what amounts to giving a quantity discount to large employers?" It's mostly certainly not a "quantity discount." These corporation aren't "buying" anything from these cities. If Apple comes in sets up shop on 100 acre campus in your town and gets tax breaks to do so then your town forfeits the equivalent tax revenue another company would have paid for the same parcel of land. There is a huge opportunity cost involved, nothing is free.
  - kiallmacinnes 8y ago
    > It's mostly certainly not a "quantity discount." These corporation aren't "buying" anything from these cities. The city is selling its land (in quantity) and talent pool (in quantity), and is giving a tax break (a discount). > If Apple comes in sets up shop on 100 acre campus in your town and gets tax breaks to do so then your town forfeits the equivalent tax revenue another company would have paid for the same parcel of land. If Bestbuy sells Microsoft 1000 laptops at a 30% discount, Bestbuy has forfeited the revenue they would have made from doing 1000 single unit+no discount sales. Despite the business making far less than maximum revenue, businesses choose to do this all the time as it created greater value for them in the end. Cities are doing essentially the same thing with big companies. You just can't look at a discount and naively equate that to a $ loss in the city bank account, just as a business can't do this when they sell a physical good.
    - bogomipz 8y ago
      >"The city is selling its land (in quantity) and talent pool" No the city is not selling land. Where in that article is it stated that Austin is selling Apple land? The city isn't "selling" it's talent pool. Companies will always gravitate towards where there's a steady supply of talent. >If Bestbuy sells Microsoft 1000 laptops at a 30% discount" Yeah your analogy is absurd, taxes are a "recurring" revenue stream for a city. It's not at all similar to a single retail transaction. >"You just can't look at a discount and naively equate that" It's not a "discount", there are no goods being sold. Future recurring revenue is being forfeited. And when there's a future budgetary short fall(and there alway is) it will be made up by the individual tax payer.

longerthoughts 8y ago

You're making drastic assumptions about the relative quantities of your variables. It's feasible that the math works out but far from guaranteed.

kiallmacinnes 8y ago
I am, I tried to make that clear with the "I'll bet..".. we don't have anywhere near enough insight to know for sure!