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As a Texan, I'm now suddenly glad Tesla didn't build here. I love Tesla more than the average human, but I'm not sure I want to give them a billion-dollar tax b

by teach 12y ago

As a Texan, I'm now suddenly glad Tesla didn't build here. I love Tesla more than the average human, but I'm not sure I want to give them a billion-dollar tax break at my expense.

sitkack 12y ago
> In exchange, the company must invest a minimum of $3.5 billion in manufacturing equipment and real property in the state—a threshold that is much lower than the $10 billion state officials expect the company to invest in Nevada over the next two decades. At the same time Texas loses having a high tech manufacturing base. How would this have been a net negative on Texas?
- maratd 12y ago
  > How would this have been a net negative on Texas? Not for Texas. For Texans. These tax reductions are given out to those with bargaining power, leaving those without to pay the bills. Mainly, the average tax payer.
  - wfjackson 12y ago
    Not sure I understand. Lets say the tax burden on a Texan today is X. Without the TSLA factory, lets say it would be Y, and let it be Z if the TSLA factory is built. Why do you think Z would be much higher than Y ? The government isn't paying to build the factory is it?
    - nordsieck 12y ago
      9% ($120M): Transferable tax credits 6% ($75M): $12,500 per job transferable tax credits (6,000 jobs) This is the only part, as far as I can tell, where the state could potentially lose out.
    - maratd 12y ago
      Who is paying for the roads, sewer, fire protection, police protection, etc.? Those services aren't free. Normally the burden is shared by all, by with these special deals, they're shared by those who didn't get the special deal.
sp332 12y ago
As pointed out in the press conference, this will bring ~$100B to the state economy. So it would probably be a net positive for you personally.
- mattm 12y ago
  Governments tend to VASTLY overestimate the benefits to the economy. The same thing happens a lot with sports teams/stadiums and events like the Olympics.

by teach 12y ago

As a Texan, I'm now suddenly glad Tesla didn't build here. I love Tesla more than the average human, but I'm not sure I want to give them a billion-dollar tax break at my expense.

sitkack 12y ago

> In exchange, the company must invest a minimum of $3.5 billion in manufacturing equipment and real property in the state—a threshold that is much lower than the $10 billion state officials expect the company to invest in Nevada over the next two decades. At the same time Texas loses having a high tech manufacturing base. How would this have been a net negative on Texas?

maratd 12y ago
> How would this have been a net negative on Texas? Not for Texas. For Texans. These tax reductions are given out to those with bargaining power, leaving those without to pay the bills. Mainly, the average tax payer.
- wfjackson 12y ago
  Not sure I understand. Lets say the tax burden on a Texan today is X. Without the TSLA factory, lets say it would be Y, and let it be Z if the TSLA factory is built. Why do you think Z would be much higher than Y ? The government isn't paying to build the factory is it?
  - nordsieck 12y ago
    9% ($120M): Transferable tax credits 6% ($75M): $12,500 per job transferable tax credits (6,000 jobs) This is the only part, as far as I can tell, where the state could potentially lose out.
  - maratd 12y ago
    Who is paying for the roads, sewer, fire protection, police protection, etc.? Those services aren't free. Normally the burden is shared by all, by with these special deals, they're shared by those who didn't get the special deal.

sp332 12y ago

As pointed out in the press conference, this will bring ~$100B to the state economy. So it would probably be a net positive for you personally.

mattm 12y ago
Governments tend to VASTLY overestimate the benefits to the economy. The same thing happens a lot with sports teams/stadiums and events like the Olympics.