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Why are so many tech companies opening up an office in Texas?

by djoldman 4y ago

bee_rider 4y ago
Maybe they want to test the robustness of their processes for power outages?
- deeptote 4y ago
  Don't forget the "location adjusted salaries" that pay 40% less for the exact same work.
  - onlyrealcuzzo 4y ago
    As of a few months ago, the most Google would cut your salary if you transfered anywhere in the US was 15%. I doubt any major companies are doing 40% cuts. It wouldn't make any sense. At $500k in The Bay - you should be saving a substantial portion of your income (especially if you're counting principal). Anyone considering a 40% paycut even to go to Montgomery Alabama would need to question their financial decisions. Sure, you might save 50% on your coffees and avocado toasts that's not going to make up losing $200k in income... The biggest reason for the cut is almost anywhere else in the US you're going to save a minimum of 4% on state income tax alone. So the max realistically is closer to 11%... A $55k cut - yeah, you might save close to that on property tax, mortgage interest, federal income tax, and your avocado toasts...
fzeroracer 4y ago
Because they bought into the meme that Texas is cheap when in reality the high property taxes means it's increasingly becoming unlivable for your average person. It's really just a way to try and save on how much they have to pay people, but it's going to be harder and harder to entice people to move to Texas when the rent is soaring and the state government continues its culture wars at the cost of tax payer dollars.
nunez 4y ago
because austin* is so hot right now Also, tax breaks, maybe, probably * most of tech is settling in austin. Dallas and Houston aren't affected yet
treeman79 4y ago
Low taxes. Low regulation. Business friendly environment. Lower cost housing.
- reducesuffering 4y ago
  These jobs are going to Austin, where a modest (for most of US) 4/2 Single family home within 20 min drive is now $23k/yr in property taxes, 4x national average. Essentially permanent $2k/mth rent even after paying off the $1m home.

Why are so many tech companies opening up an office in Texas?

bee_rider 4y ago

Maybe they want to test the robustness of their processes for power outages?

deeptote 4y ago
Don't forget the "location adjusted salaries" that pay 40% less for the exact same work.
- onlyrealcuzzo 4y ago
  As of a few months ago, the most Google would cut your salary if you transfered anywhere in the US was 15%. I doubt any major companies are doing 40% cuts. It wouldn't make any sense. At $500k in The Bay - you should be saving a substantial portion of your income (especially if you're counting principal). Anyone considering a 40% paycut even to go to Montgomery Alabama would need to question their financial decisions. Sure, you might save 50% on your coffees and avocado toasts that's not going to make up losing $200k in income... The biggest reason for the cut is almost anywhere else in the US you're going to save a minimum of 4% on state income tax alone. So the max realistically is closer to 11%... A $55k cut - yeah, you might save close to that on property tax, mortgage interest, federal income tax, and your avocado toasts...

fzeroracer 4y ago

Because they bought into the meme that Texas is cheap when in reality the high property taxes means it's increasingly becoming unlivable for your average person. It's really just a way to try and save on how much they have to pay people, but it's going to be harder and harder to entice people to move to Texas when the rent is soaring and the state government continues its culture wars at the cost of tax payer dollars.

nunez 4y ago

because austin* is so hot right now Also, tax breaks, maybe, probably * most of tech is settling in austin. Dallas and Houston aren't affected yet

treeman79 4y ago

Low taxes. Low regulation. Business friendly environment. Lower cost housing.

reducesuffering 4y ago
These jobs are going to Austin, where a modest (for most of US) 4/2 Single family home within 20 min drive is now $23k/yr in property taxes, 4x national average. Essentially permanent $2k/mth rent even after paying off the $1m home.