Because Apple isn't required to locate any of its business in a particular city or even country. Did you notice the salary ranges for the new employees? What about the income taxes those employees will pay? What about the sales taxes that will be collected from increased sales of goods and services by those employees. Apple will be providing ALL of that revenue through the salaries it pays to its employees. I would venture to say that the boost to Austin's economy will more than offset any tax break they give to Apple. It's a total win for Austin, TX and its citizens.
Finally this is still a free country. What would you say to total government regulation of prices, wages, your wages? What would you say to the government mandating where a company may or may not do business and how much profit it is allowed to make? Don't you realize that this has already been tried over and over for centuries only to fail miserably, resulting in utter economic chaos?
Actually capitalism and the greed is good trickle-down lies are the ones who have led to the demise and debt crisis in this country. The rich have sold us out, not the poor and middle class.
Even Tech writers have to write this nonsense. Apple is receiving 'government subsidies' do you even understand that the money belongs to APPLE? The Gov't doesn't actually have any money. So by the gov't "allowing" someone to play less taxes, they are giving a subsidie? I believe 80% of the country has no idea where the government gets its money. Here's a clue - they take it by force!
Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.
They don't "need" oversized margins on products either. But that is what they do.
Seriously they are the only ones standing up for the rights of Americans in this country.
They're not standing up for my rights, and I'd prefer that they do not speak on behalf of Americans, as they represent a tiny fringe group of criminals, rapists, murderers, anarchists, communists and other sorts of filthy people and losers. It's an insult to Americans to even call those people for Americans. They're pure garbage and they deserve to be met with force. I get a great kick out of watching youtube videos of cops beating those disrespectful losers down.
Throw up? What are you a corporate whore? Seriously they are the only ones standing up for the rights of Americans in this country. The founding fathers would be standing there with them.
The same founding fathers who had no problem with only white male property owners having the right to vote? I assume they had no problem with this, as this was typical at this time, and they didn't see the need to mention it in either the Constitution or the Bill of Rights. History is a bitch.
Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.
Try to understand how running a successful business works. The name of the game is PROFIT, not LOSS.
Tax corporations and the 1% to pay for the last 30 years of what they have been getting away with.
Another comment that shows how ignorant of basic business concepts people have become with the openly socialistic attitudes wrought by politicians. Sad.
Throw up? What are you a corporate whore? Seriously they are the only ones standing up for the rights of Americans in this country. The founding fathers would be standing there with them.
Socialists are as bad as corporatists. Neither should be given special favors by the federal government. As far as local government favors, it's all fair game.
Actually capitalism and the greed is good trickle-down lies are the ones who have led to the demise and debt crisis in this country. The rich have sold us out, not the poor and middle class.
Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.
I am a share holder and they are looking out for ME and other shareholders. I believe in capitalism NOT Bniceism when it comes to my money !!!
Socialists are as bad as corporatists. Neither should be given special favors by the federal government. As far as local government favors, it's all fair game.
I agree with the first part and on the latter ... Yep, at the end of the day any State can do what they feel the need to do to attract business. It would be great if one day Foxconn see a viable way to open in a State here given the right incentives.
BTW, just as a reference point for your footer ... A the time dear old Maggie said that, the right wing of the Britsh system would be called communists by today's American right wing's standards and our current administration here in the USA would seem far right to the Brits of that era. I did a lot of work for Maggie at the time so not totally making this up. Many things in life are relative.
Throw up? What are you a corporate whore? Seriously they are the only ones standing up for the rights of Americans in this country. The founding fathers would be standing there with them.
You sound like an old 60s hippie these occupy lowlifes are absolutely the bottom scum of o polluted pond.
So, 3600 employees earning on average $65k - minus say $20k for federal taxes and other crap, which leaves $45k of income which will be spent locally at a guess of 8% sales tax - and that's around $12m per year. Plus property taxes (no idea what they are, but figure that it's $500 per person so that's another $2m.
Let me think, $8m incentive over 10 years to get an extra $12m in taxes per annum, plus another $40-50m in local sales, plus a big office built (which employs people to build and materials sourced locally)......
Hmmm, $8m over 10 years, in return for $12m per year...... it's a difficult one....
Every municipality wants to fight for the jobs even if it means knee capping yourself on other things. The problem with being a good corporate citizen and paying this fee is that it's inconsistent with the mission to realize shareholder value.
/philosophize ON. I mean, we all want a high stock value. Until we want good citizenship. We all want cheap products. Until we want better working conditions. It's good to be aware of these tensions. The choices we make at each step nudge us towards some result. It's good to be aware of that before we wake up and realize the results don't match our vision of the perfect world. /philosophize OFF
Apple locating in Austin provides economic value to Austin. It is at least $200MM annual salaries, which creates new jobs with existing companies catering to the employees. The economic value to the city (hopefully) exceeds the concessions they provide to Apple.
Be clear on what they are doing: They are giving them a discount on taxes (property, sales, etc) so that they are able to collect some taxes in the end. It might be a race to the bottom for the cities, but as long as the city is ensuring that there is excess value to them it is a win-win.
Compare this to the 1980's expansion of WalMart across the US-- each city would give them property tax exemptions in order to gain more sales tax revenue, and jobs. But, the new stores killed existing businesses, created lower paying jobs, and ended up as a zero-sum game. When the incentives expired, WalMart relocated to just outside the city limits or got the next city to give them a deal, leaving a big, empty building as a blight.
If you don't want companies getting deals like this, run for city council, and vehemently oppose such actions. Push for other logical reasons why a company should do business in your jurisdiction. Understand that the chances are quite good they will go elsewhere given they can save 10% of the project cost.
Comments
Because Apple isn't required to locate any of its business in a particular city or even country. Did you notice the salary ranges for the new employees? What about the income taxes those employees will pay? What about the sales taxes that will be collected from increased sales of goods and services by those employees. Apple will be providing ALL of that revenue through the salaries it pays to its employees. I would venture to say that the boost to Austin's economy will more than offset any tax break they give to Apple. It's a total win for Austin, TX and its citizens.
Finally this is still a free country. What would you say to total government regulation of prices, wages, your wages? What would you say to the government mandating where a company may or may not do business and how much profit it is allowed to make? Don't you realize that this has already been tried over and over for centuries only to fail miserably, resulting in utter economic chaos?
Actually capitalism and the greed is good trickle-down lies are the ones who have led to the demise and debt crisis in this country. The rich have sold us out, not the poor and middle class.
Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.
They don't "need" oversized margins on products either. But that is what they do.
Seriously they are the only ones standing up for the rights of Americans in this country.
They're not standing up for my rights, and I'd prefer that they do not speak on behalf of Americans, as they represent a tiny fringe group of criminals, rapists, murderers, anarchists, communists and other sorts of filthy people and losers. It's an insult to Americans to even call those people for Americans. They're pure garbage and they deserve to be met with force. I get a great kick out of watching youtube videos of cops beating those disrespectful losers down.
Throw up? What are you a corporate whore? Seriously they are the only ones standing up for the rights of Americans in this country. The founding fathers would be standing there with them.
The same founding fathers who had no problem with only white male property owners having the right to vote? I assume they had no problem with this, as this was typical at this time, and they didn't see the need to mention it in either the Constitution or the Bill of Rights. History is a bitch.
Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.
Try to understand how running a successful business works. The name of the game is PROFIT, not LOSS.
I love Apple, but tax the Hell out of them.
Tax corporations and the 1% to pay for the last 30 years of what they have been getting away with.
Another comment that shows how ignorant of basic business concepts people have become with the openly socialistic attitudes wrought by politicians. Sad.
The "Occupy" movement makes me want to throw up. It's disgusting.
Absolutely. Besides, it has it's roots in anarcho-socialism from Canadians.
http://www.statesman.com/business/au...s-2268365.html
Welcome to 'greed is good', 'buy our congress', corporate-owned America...where you can buy both parties and the Repubs will lead the way!
Bull. Pure and simple.
Throw up? What are you a corporate whore? Seriously they are the only ones standing up for the rights of Americans in this country. The founding fathers would be standing there with them.
Socialists are as bad as corporatists. Neither should be given special favors by the federal government. As far as local government favors, it's all fair game.
Actually capitalism and the greed is good trickle-down lies are the ones who have led to the demise and debt crisis in this country. The rich have sold us out, not the poor and middle class.
You are dreadfully misinformed, Frank.
Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.
I am a share holder and they are looking out for ME and other shareholders. I believe in capitalism NOT Bniceism when it comes to my money !!!
Socialists are as bad as corporatists. Neither should be given special favors by the federal government. As far as local government favors, it's all fair game.
I agree with the first part and on the latter ... Yep, at the end of the day any State can do what they feel the need to do to attract business. It would be great if one day Foxconn see a viable way to open in a State here given the right incentives.
BTW, just as a reference point for your footer ... A the time dear old Maggie said that, the right wing of the Britsh system would be called communists by today's American right wing's standards and our current administration here in the USA would seem far right to the Brits of that era. I did a lot of work for Maggie at the time so not totally making this up. Many things in life are relative.
Throw up? What are you a corporate whore? Seriously they are the only ones standing up for the rights of Americans in this country. The founding fathers would be standing there with them.
You sound like an old 60s hippie these occupy lowlifes are absolutely the bottom scum of o polluted pond.
You were joking wern't you ?
I hope.
Let me think, $8m incentive over 10 years to get an extra $12m in taxes per annum, plus another $40-50m in local sales, plus a big office built (which employs people to build and materials sourced locally)......
Hmmm, $8m over 10 years, in return for $12m per year...... it's a difficult one....
I am a share holder and they are looking out for ME and other shareholders. I believe in capitalism NOT Bniceism when it comes to my money !!!
I had to Google 'Bniceism' and your post came up ... That was impressive but not very enlightening!
The "Occupy" movement makes me want to throw up. It's disgusting.
Absolutely. Besides, it has it's roots in anarcho-socialism from Canadians.
I knew it was the Canadians! I just KNEW it! Terrance and Phillip are behind all of this, right?
Every municipality wants to fight for the jobs even if it means knee capping yourself on other things. The problem with being a good corporate citizen and paying this fee is that it's inconsistent with the mission to realize shareholder value.
/philosophize ON. I mean, we all want a high stock value. Until we want good citizenship. We all want cheap products. Until we want better working conditions. It's good to be aware of these tensions. The choices we make at each step nudge us towards some result. It's good to be aware of that before we wake up and realize the results don't match our vision of the perfect world. /philosophize OFF
Apple locating in Austin provides economic value to Austin. It is at least $200MM annual salaries, which creates new jobs with existing companies catering to the employees. The economic value to the city (hopefully) exceeds the concessions they provide to Apple.
Be clear on what they are doing: They are giving them a discount on taxes (property, sales, etc) so that they are able to collect some taxes in the end. It might be a race to the bottom for the cities, but as long as the city is ensuring that there is excess value to them it is a win-win.
Compare this to the 1980's expansion of WalMart across the US-- each city would give them property tax exemptions in order to gain more sales tax revenue, and jobs. But, the new stores killed existing businesses, created lower paying jobs, and ended up as a zero-sum game. When the incentives expired, WalMart relocated to just outside the city limits or got the next city to give them a deal, leaving a big, empty building as a blight.
If you don't want companies getting deals like this, run for city council, and vehemently oppose such actions. Push for other logical reasons why a company should do business in your jurisdiction. Understand that the chances are quite good they will go elsewhere given they can save 10% of the project cost.