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> Even as Palantir earned $345.5 million in federal contracts in 2019, the company did not turn a profit; in fact, it hasn’t been profitable in its 17 years of

by Radim 5y ago

> Even as Palantir earned $345.5 million in federal contracts in 2019, the company did not turn a profit; in fact, it hasn’t been profitable in its 17 years of existence. How much does Palantir pay in taxes, realistically? Which taxes? The big-business world seems to revolve more around subsidies than taxation, bizarrely. Which makes me wonder, why would Colorado be so eager to have them?

ericmay 5y ago
Well, I can’t speak for Colorado but I think in Ohio we’d be eager to add a company like this instead of more warehouses and data centers. If nothing else the employees are paid and then they pay income taxes. Moves like this also great jobs, buzz, makes your city seem like a better place, etc.
- Radim 5y ago
  Perhaps, but I'd be curious to see the actual numbers. How many employees in Colorado, out of Palantir's worldwide total of ~2000? A few hundred? Relative to Colorado's population of 5,800,000. How big of a deal is this really, tax-wise? Versus the inevitable subsidies and tax breaks. The article gives similar starry-eyed rationale: “This doesn’t change the game for Denver,” [some venture capitalist] says, “but it is a signal to other tech businesses, in the time of COVID, that this is a great place.” Hey, we pay you in exposure!
  - ericmay 5y ago
    I wouldn’t call it starry-eyed from where I sit. I’m in Columbus, I’m watching other cities bring in corporate jobs from tech companies (Austin, Raleigh, Nashville, Pittsburgh, etc.) and frankly those places aren’t that much different except maybe Austin b/c of the semiconductor history. Network effects matter and while it might be silly the signal of a company moving to your city really does attract other businesses. Right now we are relying on family and friends, like someone grew up here and wants to be back near family. Meanwhile we got a new Google data center with $50+ million in tax breaks for checks notes 20 new jobs. I’d take Palantir.

by Radim 5y ago

ericmay 5y ago

Well, I can’t speak for Colorado but I think in Ohio we’d be eager to add a company like this instead of more warehouses and data centers. If nothing else the employees are paid and then they pay income taxes. Moves like this also great jobs, buzz, makes your city seem like a better place, etc.

Radim 5y ago
Perhaps, but I'd be curious to see the actual numbers. How many employees in Colorado, out of Palantir's worldwide total of ~2000? A few hundred? Relative to Colorado's population of 5,800,000. How big of a deal is this really, tax-wise? Versus the inevitable subsidies and tax breaks. The article gives similar starry-eyed rationale: “This doesn’t change the game for Denver,” [some venture capitalist] says, “but it is a signal to other tech businesses, in the time of COVID, that this is a great place.” Hey, we pay you in exposure!
- ericmay 5y ago
  I wouldn’t call it starry-eyed from where I sit. I’m in Columbus, I’m watching other cities bring in corporate jobs from tech companies (Austin, Raleigh, Nashville, Pittsburgh, etc.) and frankly those places aren’t that much different except maybe Austin b/c of the semiconductor history. Network effects matter and while it might be silly the signal of a company moving to your city really does attract other businesses. Right now we are relying on family and friends, like someone grew up here and wants to be back near family. Meanwhile we got a new Google data center with $50+ million in tax breaks for checks notes 20 new jobs. I’d take Palantir.