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How does that make any sense? 750M / 2500 is 300k. It's just better to do helicopter money - literally just drop money from the skies and I would bet that more

How does that make any sense? 750M / 2500 is 300k. It's just better to do helicopter money - literally just drop money from the skies and I would bet that more would be generated in return. Assuming that Gemini is right and Virginia keeps 5-6% of your taxable income, individuals should earn at least 5M just for break even. I don't understand this model - can someone help make sense?

deleted 3y ago
[deleted]
theturtletalks 3y ago
300K is a one-time fee, but that high paying job will probably pay state taxes for years to come. Not to mention the extra taxes collected on that person renting, shopping, driving, etc. Amazon HQ2 might get other companies to make a HQ there too. There are benefits, but Amazon can't be held accountable for deals like these.
- nebula8804 3y ago
  Don't forget all the sweet gentrification. /s
paxys 3y ago
Pretty sure they missed a 0. They were meant to bring 25,000 jobs (which itself was scaled back from the 50,000 they had initially promised). Of course the problem with all such deals is that the timeline is always "flexible" (15+ years in this case), and even if the jobs are filled they will go away overnight if the company deems it better for their bottom line. Amazon has already cut 30,000+ corporate jobs in the last year and a half, and in his latest shareholder letter Jassy committed to continued "cost-cutting" across the company (https://www.cnbc.com/2024/04/11/amazon-ceo-andy-jassy-says-committed-to-cost-cutting-while-investing-in-ai-in-shareholder-letter.html https://www.cnbc.com/2024/04/11/amazon-ceo-andy-jassy-says-c...).
tssva 3y ago
The actual terms of the deal is $22k subsidy per job. At the time of the deal the average salary for those jobs had to be $150k. That average salary requirement goes up each year. Last year it was $157k and next year $159k. The jobs also have to last 5 years in order for Amazon to get the payout. At those terms the state income tax in the salaries will more than pay for the subsidy over 5 years. That doesn’t include the additional tax revenue from the construction of HQ2. Additional tax revenue from service businesses and their employees which support either HQ2 or the employees working there.

deleted 3y ago

[deleted]

theturtletalks 3y ago

300K is a one-time fee, but that high paying job will probably pay state taxes for years to come. Not to mention the extra taxes collected on that person renting, shopping, driving, etc. Amazon HQ2 might get other companies to make a HQ there too. There are benefits, but Amazon can't be held accountable for deals like these.

nebula8804 3y ago
Don't forget all the sweet gentrification. /s

paxys 3y ago

Pretty sure they missed a 0. They were meant to bring 25,000 jobs (which itself was scaled back from the 50,000 they had initially promised). Of course the problem with all such deals is that the timeline is always "flexible" (15+ years in this case), and even if the jobs are filled they will go away overnight if the company deems it better for their bottom line. Amazon has already cut 30,000+ corporate jobs in the last year and a half, and in his latest shareholder letter Jassy committed to continued "cost-cutting" across the company (https://www.cnbc.com/2024/04/11/amazon-ceo-andy-jassy-says-committed-to-cost-cutting-while-investing-in-ai-in-shareholder-letter.html https://www.cnbc.com/2024/04/11/amazon-ceo-andy-jassy-says-c...).

tssva 3y ago

The actual terms of the deal is $22k subsidy per job. At the time of the deal the average salary for those jobs had to be $150k. That average salary requirement goes up each year. Last year it was $157k and next year $159k. The jobs also have to last 5 years in order for Amazon to get the payout. At those terms the state income tax in the salaries will more than pay for the subsidy over 5 years. That doesn’t include the additional tax revenue from the construction of HQ2. Additional tax revenue from service businesses and their employees which support either HQ2 or the employees working there.