Originally Posted by PotatoLeekSoup
Yes. Nevada gets a good deal – vs not working a deal at all and getting no economic benefit. $89 million dollar tax credit given to Apple in exchange for receiving $103 million in economic benefit. 15% return sounds like a win to me!
The math is wrong. Apple's tax 'break' doesn't cost the city a penny. It's revenue that they don't have right now. I don't know the area, but the land which will be used undoubtedly has a much lower value today and is not generating a lot of taxes. In fact, if it's anything like the NC or Austin tax 'breaks', the city will be making more after Apple moves in than before, even after Apple's temporary discount on the tax rate. So Apple pays the city more than the previous land owner PLUS the city gets all the other economic benefits.
It's really amazing how people can see this as a negative. I guess it comes from the assumption that everything belongs to the government and companies should be happy with that.
Originally Posted by Smallwheels
I don't like it when corporations get tax breaks. They aren't worth more than the citizens who have chosen to live in the same communities. All tax breaks should be given equally to everybody in the area, including existing businesses. It's especially sad when cities do that for sports teams. That is the biggest waste of money that could ever be. Without fail cities lose.
Please explain how the city loses. It appears to be empty land which is generating little tax revenue.
If the city doesn't reach a deal with Apple, they get:
- Continued collection of minimal tax revenues
If they reach a deal, they get from (http://renomemo.rgj.com/apple-looking-to-open-facility-in-reno/
- $16 M in tax revenue over 10 years - followed by something like $7 M per year after that
- 580 construction jobs for a year and a half
- 200 contract jobs permanently
- 41 full time jobs at the facility (presumably good paying jobs)
- city and state taxes from all of the above jobs
- added business at support facilities (gas stations, groceries, etc) because of the added employees
- a total of $1,000 M investment over the next 10 years (this data center is only part of it)
- greater residential property taxes from new homes and/or increased demand for existing homes due to the new jobs
Now, you may believe that "all your money are belong to us", but that's not the way it works. Apple is free to put their facility anywhere they wish. The city is free to offer whatever tax 'breaks' it wishes to increase its future revenues. Only a fool would insist that "we're entitled to collect all the normal taxes and refuse to give you an incentive to move here". That would be a great way to ensure that your state and city go downhill fast. Your argument that the city loses is absurd. The city comes out way ahead in this deal.