Apple Expressing Frustration as Tax Incentives for Austin Expansion Remain in Limbo

[Small White Car]

flat tax baby

But that doesn't fit what goodcow is saying.

So even if Texas has a flat tax of 10%. Then Arizona sets a flat tax of 9%...then businesses move, so texas sets theirs to 8%.

All of that would be illegal under goodcow's proposal...so what does that mean? How can a state or a city run itself if it's not allowed to change what it charges in taxes?

 

[AppleFan360]

3,600 people paying income tax and sales tax and homeowner taxes and car taxes provides lots of revenue.

Exactly! The 3,600 people with good paying jobs who spend that money in the local economy will bring in more than the tax that Apple would pay. A lot of people don't understand this concept. The jobs themselves are what matter.

The Austin leadership better get off their butts and make this deal. It would be a big loss to Austin if they blow it.

 

[Thunderhawks]

Given the current situation, where they apparently do have to fight with Arizona over tax subsidies, is what is indefensible and no, I don't have a short term solution. The real solution would be to ban tax breaks, subsidies and corporate welfare nation wide for publicly traded companies.

Your real solution will send more jobs out of the country.

To other posters , I don't get why it is ever an issue how much money somebody has. (Apple, IBM, Google, whoever)

A business is there to make money, as much of it as possible.

Once this is understood, the rest is obvious :

Go where you have the least amount of costs
Go where you can expand
Go where the business climate is friendly

etc.etc.

The county is free to run its numbers and see if this deal is really a deal and so is a company.

Given Apples track record, chances are okay that this could become a deal
after the tax break expires.

On the other hand none of the county dudes will be around to see this and most likely after that tax break period, Apple may go some other place for the next tax break.

Just business at work. Frustrating, yes. Can it be changed? No!

Money is a sensitive moving thing. Any obstruction and it goes someplace else.

 

[angrynstupid]

Screw Texas - Come to Michigan

We'll give you a tax break!

 

[tonytiger13]

Another thing that is hotly debated is money made overseas. Once Apple brings that money (which is a good 1/2 - 2/3 of their cash revenue) into the US, it'll be taxed like no other. Businesses are asking the US Government for a tax holiday on money overseas. We all hope Apple and Google would spend that money for more infrastructure, hiring, and domestic investment but last time there was a tax holiday, they just bought back stock and did little to help their shareholders. But imagine if they did! That's a lot of money they could invest in more stores, campuses, etc.

 

[JHankwitz]

I honestly wonder why Apple wants/needs the tax breaks? Since I'm not privy to all the information, I'll reserve judgement.

So, why do you look for all the tax breaks when you pay your taxes each year? Anyone that doesn't has a few screws missing. Or, perhaps you're one of those that searches for the community with the highest taxes to move to?

 

[Small White Car]

To other posters , I don't get why it is ever an issue how much money somebody has. (Apple, IBM, Google, whoever)

What I most enjoy about that argument is that it implies Apple should just move all of their employees and factories to midtown Manhattan. After all, they can afford it, so clearly that's what makes the most sense!

As if having money and wasting money go hand in hand for some reason.

 

[whooleytoo]

Why is it that some people just don't get it. You have to break an egg to get an. . .

...Apple?

No wonder I failed Biology...

 

[numlock]

Exactly! The 3,600 people with good paying jobs who spend that money in the local economy will bring in more than the tax that Apple would pay. A lot of people don't understand this concept. The jobs themselves are what matter.

The Austin leadership better get off their butts and make this deal. It would be a big loss to Austin if they blow it.

so big employers should always get tax breaks because all their staff should in theory spend a lot in the local economy?

As if having money and wasting money go hand in hand for some reason.

no having money seems to go hand in hand with paying as little taxes as possible while your customers tax money pay for infrastructure and what else they demand.

 

[tonytiger13]

What I most enjoy about that argument is that it implies Apple should just move all of their employees and factories to midtown Manhattan. After all, they can afford it, so clearly that's what makes the most sense!

As if having money and wasting money go hand in hand for some reason.

I agree with that last statement of yours. Trying to find tax breaks is a good way for anyone to save money as long as it's not shady and perfectly legal.

I think Apple could help the situation by giving the county some incentives such as Apple sponsoring a park cleanup program or installing solar panels or electric car charging stations etc (I know, very hippy, very green, but Apple's MO nowadays). This, to me, is not "wasting" money. As you said, wasting money is not looking for tax breaks.

 

[gotluck]

But that doesn't fit what goodcow is saying.

So even if Texas has a flat tax of 10%. Then Arizona has a flat tax of 9%...then businesses move, so texas sets theirs to 8%.

All of that would be illegal under goodcow's proposal...so what does that mean? How can a state run itself if it's not allowed to change what it charges in taxes?

Haha, I was half joking. I have no comment on the details of the tax breaks, but Texas is one of, if not the strongest state in the US. Setting a (potentially unfavorable) precedent with Apple could damage their relationship with other companies in the area. I know Apple is the center of the universe here, but there are plenty of other big tech groups in Texas. I'm not privy to the companies specifically in the Austin area, but Apple's not the only game in Texas.

 

[foodog]

Why give tax breaks to the most profitable corporations in the world? The local authorities have to provide infrastructure, etc., and get no revenue?

The revenue comes from the workers paychecks, and sales tax from employees buying goods.

 

[Small White Car]

so big employers should always get tax breaks because all their staff should in theory spend a lot in the local economy?

I get a tax break for owning a home. And another for having a kid.

Governments give all kind of breaks to encourage behaviors they find desirable. I'm not sure where all of you people live, but in many places bringing that many jobs all at once is incredibly desirable to the local population. It's great that you don't need a job, but a lot of people do, and a government that is sensitive to that and trying to fix it is a good government.

 

[tonytiger13]

no having money seems to go hand in hand with paying as little taxes as possible while your customers tax money pay for infrastructure and what else they demand.

It sucks I know. The more money you have, the more resources you can put into finding more tax breaks, giving you more money. It's a cycle that repeats itself and if you can get to that level in life, congratulations, you're rich. But let's hope that's not everything to you.

Warren Buffet pays less taxes than his secretary. I think Americans in the $100,000 to $1,000,000 salary range have it hardest when it comes to taxes.

Corporations are they same way. There is unfair advantages to larger corporations and the smaller ones can't compete. Who's suppose to help them out?

 

[whooleytoo]

The revenue comes from the workers paychecks, and sales tax from employees buying goods.

Then maybe the workers should band together, and demand a tax break or else they'll move out-of-state.

 

[numlock]

I get a tax break for owning a home. And another for having a kid.

Governments give all kind of breaks to encourage behaviors they find desirable. I'm not sure where all of you people live, but in many places bringing that many jobs all at once is incredibly desirable to the local population. It's great that you don't need a job, but a lot of people do, and a government that is sensitive to that and trying to fix it is a good government.

i live in a place where the local authorities were threatened regularly few years ago that big companies would elsewhere if they didnt get the tax rates they desired. ireland was often named as a popular destination. how did things turn out for them?

actually i do need a job. i also do have a job and a small company on the side and in both cases i pay the taxes that i am required to pay. i get no special treatment. i spend some of my money on products from companies that feel it is beneath them to pay the full tax amount

the tax breaks you get are pretty much by the book correct?

The revenue comes from the workers paychecks, and sales tax from employees buying goods.

that applies to every workplace and every workforce.

 

[Small White Car]

Warren Buffet pays less taxes than his secretary.

No, he pays at a lower tax rate. He definitely pays more than her in taxes.

I very much agree with Buffet that his taxes should be raised, so I'm not arguing with your overall point. I'm just pointing out that details like that make a difference.

 

[iScott428]

Much rather give Apple the tax breaks than oh I dont know, General Motors, Big Oil, Healthcare industries....the list goes on far too long for companies that IMO make terrible products.

Apple should add a gun range to the plans and we should see it pass in a week

Or keep complaining, delaying, and pissing Apple off and they will send the jobs overseas to much more qualified workers at a lower cost. As a shareholder I vote for this option.

 

[gotluck]

Corporations are they same way. There is unfair advantages to larger corporations and the smaller ones can't compete. Who's suppose to help them out?

It pushes many small businesses to 'fudge' their tax returns and hope they get lost in the shuffle. Which, many do.

small businesses > large businesses in the grand scheme of things

I agree that priorities seemed to be screwed up.

 

[IJ Reilly]

Why give tax breaks to the most profitable corporations in the world? The local authorities have to provide infrastructure, etc., and get no revenue?

Yes, it's pretty much standard operating procedure these days. Until a story like this pops up for a company they know about, most people probably don't realize that local governments routinely rebate taxes to corporations to induce them to move to their area. Essentially, this shifts the burdens of providing infrastructure to the rest of the tax base. The problem is, pretty much every local government does it, and that makes it easy for corporations to play communities off against each other. They often walk away with huge gimmies like this one.

 

[you people smh]

or OR, how about they are a company that is sitting on almost $100 billion, that made $11 billion in the last 3 MONTHS alone.

How about they spend their own money, which they largely get from their huge profit margins on what are for most people toys, and expand their business on their own.

These tax credits are getting really out of hand.

Nah, who am i kidding. It's the bestest company in the world who makes the bestest products for people who really need them to be productive in life so the people of texas probably should pay to have the priveledge of them setting up shop in the vicinity.

 

[BornAgainMac]

They are not going to ask for free wi-fi from Apple?

 

[Small White Car]

that applies to every workplace and every workforce.

The math is pretty simple here. Apple has $300 million that are either going to pump into Texas or into Arizona.

The proposal here is that wherever they go will give them about $30 million back. You can argue all day about how bad it looks or how bad it sounds, but the fact is, getting $300 for paying $30 is not a bad deal at all.

How about they spend their own money, which they largely get from their huge profit margins on what are for most people toys, and expand their business on their own.

What part of that doesn't sound like "spending their own money?"

If you give me $30 and I give you $300 you're really going to tell me that I'm a freeloader?

 

[you people smh]

Much rather give Apple the tax breaks than oh I dont know, General Motors, Big Oil, Healthcare industries....the list goes on far too long for companies that IMO make terrible products.

Oooohhh. Inquiring minds want to know. Please provide a list of the "terrible products" that oil companies and healthcare industries make...

 

[HeedJSU]

Why give tax breaks to the most profitable corporations in the world? The local authorities have to provide infrastructure, etc., and get no revenue?

Tax breaks do not include income taxes (I know, Texas does not have an income tax) sales taxes charged when all these people spend their payroll, and all the other little assorted taxes that we as Americans are taxed to death with. Sure, they (the city) lose a little up front, but they gain in the long run. Please take a few business courses before you spout ignorance.