4 ms·

> what jobs? Are we talking software engineers or warehouse workers? Workers with an average salary of $150,000, I think it's disingenuous to act like you don'

by quxbar 8y ago

> what jobs? Are we talking software engineers or warehouse workers? Workers with an average salary of $150,000, I think it's disingenuous to act like you don't know that but you're also an expert in property tax reform.

cletus 8y ago
Pay one person a salary of $1m and you can pay 9 people $55k to average $150k. The average means nothing. Will there some site lead earning $20m/year bringing up the average?
- all_blue_chucks 8y ago
  25,000 x $150,000 = $3.75 Billion dollars of new taxable income, regardless of how it is distributed.
  - QML 8y ago
    Those billions aren’t uniformly taxed: that’s what they were pointing out.
    - hannasanarion 8y ago
      Actually, those billions wouldn't have been taxed at all. That was part of the deal: Amazon gets all of the income taxes that are paid by their employees in the first ten years.
      - kevindong 8y ago
        To be more specific, this part of the deal is called the Excelsior Jobs program. It rebates to Amazon 6.85% [0] of the wages earned by the company's employees, which effectively does mean that income taxes get paid out to Amazon (in reality, the income taxes paid plus a little more due to the NYS tax brackets [1]). That being said, there's no city-level income tax rebate. Assuming the tax brackets currently in effect hold steady until the full 25k jobs promise was fulfilled, the city of New York would get ~3.8% of $150k * 25k jobs = ~$142.5 million/year once the 25k job mark is reached [2]. [0]: https://esd.ny.gov/excelsior-jobs-program https://esd.ny.gov/excelsior-jobs-program [1]: Note how the 6.85% bracket only applies to income above $215.4k; income above $1.08 million gets taxed at 8.82%; consequently Amazon will get more rebated than employees paid in income tax the vast majority of the time. See the second table of page 57: https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=57 https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=... [2]: The ~3.8% is approximated based off of page 69 of https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=69 https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=...
- kevindong 8y ago
  The Virginia agreement actually has a clause to prevent that loophole from being abused to the $20 million/year extent. Jobs that pay more than $850k/year (adjusted upward by 1.5% per year) can only be calculated into the average as being a $850k/year job. Quoted from page 2 of the Virginia agreement [0]: "If any of the persons holding New Jobs are paid “wages” in any calendar year in excess of $850,000, as escalated 1.5% per year, as shown on Exhibit D, the amount of wages in excess of $850,000, or the higher escalated amount, shall not be included in clause (A)." [0]: https://d39w7f4ix9f5s9.cloudfront.net/a1/f2/85b7a8db41379e151054ff05e815/commonwealth-of-virginia-agreement.pdf https://d39w7f4ix9f5s9.cloudfront.net/a1/f2/85b7a8db41379e15...
- oh_sigh 8y ago
  From a taxation perspective, that would be even better for the state, because on average a person making $1m/yr + 9 making $55k has a higher marginal tax rate than 10 people making $150k

by quxbar 8y ago

cletus 8y ago

Pay one person a salary of $1m and you can pay 9 people $55k to average $150k. The average means nothing. Will there some site lead earning $20m/year bringing up the average?

all_blue_chucks 8y ago
25,000 x $150,000 = $3.75 Billion dollars of new taxable income, regardless of how it is distributed.
- QML 8y ago
  Those billions aren’t uniformly taxed: that’s what they were pointing out.
  - hannasanarion 8y ago
    Actually, those billions wouldn't have been taxed at all. That was part of the deal: Amazon gets all of the income taxes that are paid by their employees in the first ten years.
    - kevindong 8y ago
      To be more specific, this part of the deal is called the Excelsior Jobs program. It rebates to Amazon 6.85% [0] of the wages earned by the company's employees, which effectively does mean that income taxes get paid out to Amazon (in reality, the income taxes paid plus a little more due to the NYS tax brackets [1]). That being said, there's no city-level income tax rebate. Assuming the tax brackets currently in effect hold steady until the full 25k jobs promise was fulfilled, the city of New York would get ~3.8% of $150k * 25k jobs = ~$142.5 million/year once the 25k job mark is reached [2]. [0]: https://esd.ny.gov/excelsior-jobs-program https://esd.ny.gov/excelsior-jobs-program [1]: Note how the 6.85% bracket only applies to income above $215.4k; income above $1.08 million gets taxed at 8.82%; consequently Amazon will get more rebated than employees paid in income tax the vast majority of the time. See the second table of page 57: https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=57 https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=... [2]: The ~3.8% is approximated based off of page 69 of https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=69 https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf#page=...
kevindong 8y ago
The Virginia agreement actually has a clause to prevent that loophole from being abused to the $20 million/year extent. Jobs that pay more than $850k/year (adjusted upward by 1.5% per year) can only be calculated into the average as being a $850k/year job. Quoted from page 2 of the Virginia agreement [0]: "If any of the persons holding New Jobs are paid “wages” in any calendar year in excess of $850,000, as escalated 1.5% per year, as shown on Exhibit D, the amount of wages in excess of $850,000, or the higher escalated amount, shall not be included in clause (A)." [0]: https://d39w7f4ix9f5s9.cloudfront.net/a1/f2/85b7a8db41379e151054ff05e815/commonwealth-of-virginia-agreement.pdf https://d39w7f4ix9f5s9.cloudfront.net/a1/f2/85b7a8db41379e15...
oh_sigh 8y ago
From a taxation perspective, that would be even better for the state, because on average a person making $1m/yr + 9 making $55k has a higher marginal tax rate than 10 people making $150k