They had to buy an expensive house. Otherwise it would have been a capital gain and they would have lost most of it to taxes. And the fact that they bought 49 acres probably means that the rest of the land won't be developed, which generally is a good thing for the environment.
This is false. Theres no 1031 tax deferred exchange available for homes, it's only available for investment properties.
They get $500K of gain exempt from capital gains taxes from the sale of their old home whether or not they go on to purchase a bigger better home. They are still going to have to pay a pretty hefty bill in April next year.
This is a common misconception by the "progressives". A tax break is the government letting someone keep THEIR money, not the government giving someone money. You describe it is almost as if the government is entitled to 100% of someones money and they should be thankful if the government lets them keep a single cent.
Actually I see tax breaks as the government letting them use resources, both natural and man-made (infrastructure), without paying fair value them.
However, the first poster suggesting this is at the expense of the US citizen in incorrect as well, at least in this case. US citizens on the whole benefit from this deal, billions spent on domestic construction, ripples out from the data center project before it's even operational.
Once it's in operation it does surprise me that it's only expected to have 50 full time employees. I'd imagine that doesn't count facilities personel (janitors / security guards / landscapers / maintenance), but maybe it does...
Why did Apple need the Fulbright property so badly?
It's in the way of a planned Apple facility. It's cheaper to pay them 1.7 mil to move than find new location or constrict their facility to fit the available land.
And that is why Americans are inferior to Europeans, who are willing to sacrifice a bit to embetter society as a whole. As a result, they have cheaper healthcare for all, potholes are unheard of, and everyone is happier (as proven by surveys and quality of life studies). Your greed inhibits both yourself and your country.
...something like "I heard China is interested."
That statement is about as intelligent as the previous one. Please explain to us how a data center that serves the U.S. could be located halfway around the world without very significant latency. We're all listening.
KTappe, I like & understand some of what you are speaking about but in a larger sense, You've got to be Kidding!?! Europe is still stuck in a couple of millennium of wars and division that have colored "what's possible" in the European mind. Even with the joy that "potholes are unheard of," they are tend to act more like Grandparents after 2,900 years... America may be more like teenagers, after about 230 to 250 years (you can make fun of this if you'd like)... but what you call greed could be innovation and youthful energy (because it's not as though Europe hasn't had a couple of thousand years of corruption, deciet and <gasp> greed, etc.).
On the second point...he was just tweaking you. You're supposed to chuckle and leave it at that.
And that is why Americans are inferior to Europeans, who are willing to sacrifice a bit to embetter society as a whole. As a result, they have cheaper healthcare for all, potholes are unheard of, and everyone is happier (as proven by surveys and quality of life studies). Your greed inhibits both yourself and your country.
Americans are inferior to Europeans? How Aryan of you.
"Embetter?" Is that like embiggen? Surveys and quality of life studies have proven the pothole factor a cromulent indicator of economic success and happiness.
As a public company, Apple has a fiduciary responsibility to do what is in the best interest of its shareholders.
Quote:
On the second point...he was just tweaking you. You're supposed to chuckle and leave it at that.
Yes, that was sarcasm. I should have attached an appropriate
Why buy your own gear? Fill the place with your own gear, take the hit for lost sales, and use the datacentre to shut those idiots who say Macs can't do business up.
That's what I'd do. What better sales pitch could you have than a multi-million dollar datacentre that pushes data around as though it was an air hockey puck over datacentres that run Windows that push data around like it's a brick on a rubber mat?
Are the Chinese factories where Macs are manufactured all run exclusively with Macs?
Did the hospitals where Steve Jobs got his cancer surgery and liver transplant use Macs exclusively? Were the surgeons who operated on Steve Jobs and saved his life all Mac users? If not, then imagine all the fun Microsoft and Dell could have with this.
Of course, Apple could have taken them to court, had the state or county declare "eminent domain" and taken the property... in which case the owners would have gotten maybe $170,000 for it???
Seems like Apple realized they could treat those folks better than the government would/could.
I completely agree. It's good PR for Apple and it makes good business sense.
Did the hospitals where Steve Jobs got his cancer surgery and liver transplant use Macs exclusively? Were the surgeons who operated on Steve Jobs and saved his life all Mac users?
I don't know, but the story is that when Steve Jobs went for his surgery, he said to his surgeons, "please tell me you're all Mac users." To which the head surgeon replied, "we're all Mac users today."
This is false. Theres no 1031 tax deferred exchange available for homes, it's only available for investment properties.
They get $500K of gain exempt from capital gains taxes from the sale of their old home whether or not they go on to purchase a bigger better home. They are still going to have to pay a pretty hefty bill in April next year.
Given enough lead time, they could qualify for a 1031 exchange. They can also reduce their basis if they've improved the property during the time they owned it.
So what you are saying is if Apple had agreed to pay the standard tax rate that the stock of Apple would have been reduced in value?
So what your saying is that by not offering tax breaks Apple would have still built the data center there?
Are you also implying that the value of the taxes is more than the associated economic impact of having Apple build a data center in their state?
I realize people that are generally pro-big government strenuously object to any disruption in the filling of the tax income trough, but simply collecting taxes is not always the best source of revenue for a municipality.
Indeed, with the second highest corporate tax rate in the world, it's pretty easy to see the drop off of economic activity in the US vs. past years.
And every time some idiot Democrat gets up and starts spouting their class warfare rhetoric about "rich" being $250,000K and above I want to puke - small business owners, which are the backbone of our job market, often exceed $250,000K in income - and typically plow the majority of that back into their businesses too.
Our regressive and punitive income tax system is going to be the final nail in our economy if people don't stop listening to populist rhetoric and get some common sense
Then again we have people who think debt is good running around too. sigh...
Sounds like someone is suffering from a bad case of talk radio poisoning.
The real story is that large corporations can often demand property tax and other forms of give-backs from local governments because they are able to play jurisdictions off against each other. Which they can do irrespective of whether they've made the decision to locate somewhere for reasons that have nothing whatsoever to do with taxes. Can individuals do that? Of course not. So when the corporations don't pay for the cost of providing services, somebody else does. I wonder who that is?
Making this sound like a good or fair system requires the application of a whole lot of cognitive dissonance. Sadly, there seems to more than enough of it around.
A triumph for Apple to own this land and build a factory in the US. I am glad people in our own country will start working there and NC economy will start to prosper once again. I am sick of Made in China and other parts of the world except our own country.Hopefully Apple will start to manufacturer computers there also and not made in China and boost our economy instead of theirs.
It is obvious that you didn't understand what you read, try reading it again. It is a data center NOT a factory.
Kind of weird comments from a registered user that is from the Philippines.
I seriously doubt Apple did much negotiating. These are incentives put out by the local council to help bring companies in. This happens all the time to help lure people into an area to build it up.
Also, the contracts to purchase the land were probably drawn up a long time ago (3+ years) as it takes time to design a building of this scale. You can't draw up plans for a building until you know the land it's going to sit on. At that time Apple didn't have "50 billion in the bank".
the design came from msft denver windfall model
updated and made green
the real change is in SW .
Apple will build at least 10 more of these giants
and of note
its 2 locations build back to back
i expect S W canada to be next ..Vancover ??
APPLE is now so large and so humble that i thought of them wHen seeing SKY-NETt take over the world in Terminator 3.....STEVE STEVE don't do it
If anyone hasn't noticed, iOS is Apple's main priority. Not software or the Mac. I doubt if they'll be interested in creating their own version of Creative Suite. They don't even update their own software or for that case their hardware.
I reacently updated to CS5 and the experience has not been very pleasant, I have to go through all my work, because some previous features doesn't work anymore. The Mac certainly isn't Adobe's main priority anymore, which is where the biggest part of the creative community resides.
Comments
They had to buy an expensive house. Otherwise it would have been a capital gain and they would have lost most of it to taxes. And the fact that they bought 49 acres probably means that the rest of the land won't be developed, which generally is a good thing for the environment.
This is false. Theres no 1031 tax deferred exchange available for homes, it's only available for investment properties.
They get $500K of gain exempt from capital gains taxes from the sale of their old home whether or not they go on to purchase a bigger better home. They are still going to have to pay a pretty hefty bill in April next year.
How is it at the expense of the US citizen?
Is the government giving them a check?
This is a common misconception by the "progressives". A tax break is the government letting someone keep THEIR money, not the government giving someone money. You describe it is almost as if the government is entitled to 100% of someones money and they should be thankful if the government lets them keep a single cent.
Actually I see tax breaks as the government letting them use resources, both natural and man-made (infrastructure), without paying fair value them.
However, the first poster suggesting this is at the expense of the US citizen in incorrect as well, at least in this case. US citizens on the whole benefit from this deal, billions spent on domestic construction, ripples out from the data center project before it's even operational.
Once it's in operation it does surprise me that it's only expected to have 50 full time employees. I'd imagine that doesn't count facilities personel (janitors / security guards / landscapers / maintenance), but maybe it does...
50 billion in the bank and they negotiate a reduction in property taxes and income taxes. Greed is good!
I'm fairly certain that you Don't run a business.
Why did Apple need the Fulbright property so badly?
It's in the way of a planned Apple facility. It's cheaper to pay them 1.7 mil to move than find new location or constrict their facility to fit the available land.
And that is why Americans are inferior to Europeans, who are willing to sacrifice a bit to embetter society as a whole. As a result, they have cheaper healthcare for all, potholes are unheard of, and everyone is happier (as proven by surveys and quality of life studies). Your greed inhibits both yourself and your country.
...something like "I heard China is interested."
That statement is about as intelligent as the previous one. Please explain to us how a data center that serves the U.S. could be located halfway around the world without very significant latency. We're all listening.
KTappe, I like & understand some of what you are speaking about but in a larger sense, You've got to be Kidding!?! Europe is still stuck in a couple of millennium of wars and division that have colored "what's possible" in the European mind. Even with the joy that "potholes are unheard of," they are tend to act more like Grandparents after 2,900 years... America may be more like teenagers, after about 230 to 250 years (you can make fun of this if you'd like)... but what you call greed could be innovation and youthful energy (because it's not as though Europe hasn't had a couple of thousand years of corruption, deciet and <gasp> greed, etc.).
On the second point...he was just tweaking you. You're supposed to chuckle and leave it at that.
And that is why Americans are inferior to Europeans, who are willing to sacrifice a bit to embetter society as a whole. As a result, they have cheaper healthcare for all, potholes are unheard of, and everyone is happier (as proven by surveys and quality of life studies). Your greed inhibits both yourself and your country.
Americans are inferior to Europeans? How Aryan of you.
"Embetter?" Is that like embiggen?
As a public company, Apple has a fiduciary responsibility to do what is in the best interest of its shareholders.
On the second point...he was just tweaking you. You're supposed to chuckle and leave it at that.
Yes, that was sarcasm. I should have attached an appropriate
Why buy your own gear? Fill the place with your own gear, take the hit for lost sales, and use the datacentre to shut those idiots who say Macs can't do business up.
That's what I'd do. What better sales pitch could you have than a multi-million dollar datacentre that pushes data around as though it was an air hockey puck over datacentres that run Windows that push data around like it's a brick on a rubber mat?
Are the Chinese factories where Macs are manufactured all run exclusively with Macs?
Did the hospitals where Steve Jobs got his cancer surgery and liver transplant use Macs exclusively? Were the surgeons who operated on Steve Jobs and saved his life all Mac users? If not, then imagine all the fun Microsoft and Dell could have with this.
Of course, Apple could have taken them to court, had the state or county declare "eminent domain" and taken the property... in which case the owners would have gotten maybe $170,000 for it???
Seems like Apple realized they could treat those folks better than the government would/could.
I completely agree. It's good PR for Apple and it makes good business sense.
Did the hospitals where Steve Jobs got his cancer surgery and liver transplant use Macs exclusively? Were the surgeons who operated on Steve Jobs and saved his life all Mac users?
I don't know, but the story is that when Steve Jobs went for his surgery, he said to his surgeons, "please tell me you're all Mac users." To which the head surgeon replied, "we're all Mac users today."
This is false. Theres no 1031 tax deferred exchange available for homes, it's only available for investment properties.
They get $500K of gain exempt from capital gains taxes from the sale of their old home whether or not they go on to purchase a bigger better home. They are still going to have to pay a pretty hefty bill in April next year.
Given enough lead time, they could qualify for a 1031 exchange. They can also reduce their basis if they've improved the property during the time they owned it.
So what you are saying is if Apple had agreed to pay the standard tax rate that the stock of Apple would have been reduced in value?
So what your saying is that by not offering tax breaks Apple would have still built the data center there?
Are you also implying that the value of the taxes is more than the associated economic impact of having Apple build a data center in their state?
I realize people that are generally pro-big government strenuously object to any disruption in the filling of the tax income trough, but simply collecting taxes is not always the best source of revenue for a municipality.
Indeed, with the second highest corporate tax rate in the world, it's pretty easy to see the drop off of economic activity in the US vs. past years.
And every time some idiot Democrat gets up and starts spouting their class warfare rhetoric about "rich" being $250,000K and above I want to puke - small business owners, which are the backbone of our job market, often exceed $250,000K in income - and typically plow the majority of that back into their businesses too.
Our regressive and punitive income tax system is going to be the final nail in our economy if people don't stop listening to populist rhetoric and get some common sense
Then again we have people who think debt is good running around too. sigh...
The real story is that large corporations can often demand property tax and other forms of give-backs from local governments because they are able to play jurisdictions off against each other. Which they can do irrespective of whether they've made the decision to locate somewhere for reasons that have nothing whatsoever to do with taxes. Can individuals do that? Of course not. So when the corporations don't pay for the cost of providing services, somebody else does. I wonder who that is?
Making this sound like a good or fair system requires the application of a whole lot of cognitive dissonance. Sadly, there seems to more than enough of it around.
However, I'd bet they use Xserves whenever and where ever possible.
__________________
watch free movies online
A triumph for Apple to own this land and build a factory in the US. I am glad people in our own country will start working there and NC economy will start to prosper once again. I am sick of Made in China and other parts of the world except our own country.Hopefully Apple will start to manufacturer computers there also and not made in China and boost our economy instead of theirs.
It is obvious that you didn't understand what you read, try reading it again. It is a data center NOT a factory.
Kind of weird comments from a registered user that is from the Philippines.
I seriously doubt Apple did much negotiating. These are incentives put out by the local council to help bring companies in. This happens all the time to help lure people into an area to build it up.
Also, the contracts to purchase the land were probably drawn up a long time ago (3+ years) as it takes time to design a building of this scale. You can't draw up plans for a building until you know the land it's going to sit on. At that time Apple didn't have "50 billion in the bank".
the design came from msft denver windfall model
updated and made green
the real change is in SW .
Apple will build at least 10 more of these giants
and of note
its 2 locations build back to back
i expect S W canada to be next ..Vancover ??
APPLE is now so large and so humble that i thought of them wHen seeing SKY-NETt take over the world in Terminator 3.....STEVE STEVE don't do it
I reacently updated to CS5 and the experience has not been very pleasant, I have to go through all my work, because some previous features doesn't work anymore. The Mac certainly isn't Adobe's main priority anymore, which is where the biggest part of the creative community resides.