Apple Shaking Down another State

Discussion in 'Politics, Religion, Social Issues' started by IPlayFair, Aug 2, 2012.

  1. IPlayFair macrumors member

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    #1
    CNET article about Apple receiving a 89 million dollar tax break from Nevada for building a data center there. I find this totally unacceptable. Tax breaks for a company with the ability to pay. I don't know, I suppose there is some benefit to Nevada other than the governor boasting he brought 135 jobs to the state. Why don't we rename Apple the Government of Apple. It has more resources than some countries. :confused:
     
  2. nuckinfutz macrumors 603

    nuckinfutz

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  3. LethalWolfe macrumors G3

    LethalWolfe

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    #3
    Wouldn't a Capitalistic mindset say 'no' to taking a handout from the State?

    I agree with IPlayFair that there should restrictions on corporate welfare just like their are restriction on social welfare. Small businesses, start ups, etc., should qualify for breaks and/or incentives to help promote growth, but huge, massively successful companies don't need freebies and shouldn't get them, IMO. I mean, I cringe even time I see tax payer money used to help build a football stadium when the NFL generates about 9 billion a year in revenue. Sure, take 500 million in taxpayer funds to help build a new sports stadium and then charge those same taxpayers excessive (and ever increasing) amounts to park, eat and watch games there. Talk about double dipping...
     
  4. nuckinfutz macrumors 603

    nuckinfutz

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    #4
    No

    Apple is public company. Their shareholders expect for them to be as efficient as possible.

    Apple could be build a datacenter in multiple locations so these states bidding for their services need to up the ante.

    I don't pay taxes unless I have to and I don't expect Apple or any other corporation to do what I wouldn't.
     
  5. balamw Moderator

    balamw

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    #5
    MOD NOTE: Thread has potential to move in a PRSI way very quickly, so moved here to avoid posts from non-PRSI eligible users.

    B
     
  6. rdowns macrumors Penryn

    rdowns

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    #6

    Why are you blaming Apple for playing the game? They are responsible for maximizing shareholder value and obtaining tax breaks from states and/or cities is part of the game. You want to change that, lobby your local and state representatives and tell them to stop corporate welfare.
     
  7. macquariumguy macrumors 6502a

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    #7
    So the OP is locked out of his own thread now? That hardly seems sporting.
     
  8. LethalWolfe macrumors G3

    LethalWolfe

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    #8
    Agreed. Most of the time when I see people play the 'Capitalist card' they are doing it in reference to the mythical 'pure Capitalism' that basically has everyone bootstrapping it and government playing no role at all in the private sector. I see that you meant Capitalism in the real world sense of private companies socializing the most amount of debt possible and privatizing the most amount of profits possible.

    A big difference of course being that companies like Apple are large enough to essentially write their own tax breaks where as you limited to what's only on the menu.

    Unfortunately thanks to gerrymandering elected officials aren't nearly as beholden to the electorate as they should be.
     
  9. MadeTheSwitch macrumors 6502a

    MadeTheSwitch

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    #9
    89 million for only 135 jobs doesn't seem to be a real good cost/benefit ratio. That means each new job cost nearly 660,000 dollars in concessions to obtain? Maybe they are relying on potential expansions to help justify that number. Still, it's pretty small potatoes compared to a hotel/casino that employes thousands.
     
  10. Liquorpuki macrumors 68020

    Liquorpuki

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    #10
    Farmers Field?
     
  11. LethalWolfe macrumors G3

    LethalWolfe

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    #11
    Ugh... don't remind me of the mess that is building an NFL stadium in/near LA.
     
  12. eric/ Guest

    eric/

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    #12
    Getting a tax break doesn't sound very capitalist to me.
     
  13. Rodimus Prime macrumors G4

    Rodimus Prime

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    #13
    The fact you think we really have any say in voting is funny. Our elected officals are bought and paid for. Top it off the districts are stack to keep them in place.

    The game is busted and example like this break for Apple proves out wrong the game is. Tax payers are getting ripped off so the rich can get richer and the poor will get poorer because that missing money is going to come from some place and I can promise you ti will not be any services the rich need.

    Expect the schools to eat another 89mil in cuts over this.
     
  14. Raid macrumors 68020

    Raid

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    #14
    How so? The very nature of capitalism is to capitalize on any market advantage they (businesses) can in order to maximize profits.
     
  15. noisycats macrumors 6502a

    noisycats

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    #15
    Nevada is free to say "pound sand". Why is Apple to blame?
     
  16. rdowns macrumors Penryn

    rdowns

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    #16

    That is probably true on a national level but not on the state and local levels...yet.
     
  17. Fazzy macrumors 6502

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    No he isn't. He plays fair. ;)
     
  18. LethalWolfe macrumors G3

    LethalWolfe

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    #18
    Because a stereotypical Capitalist talking point is that government needs to stay out of private business. There should be no min wage laws, there should be no environmental regulations, there should be no safety regulations, etc.,. Let businesses do as they will and it'll all work itself out in the end (somehow... my guess is by magic). Of course the hypocrisy comes into play as soon as businesses figure out ways to leverage government intervention to their advantage. Capitalism in theory is no government involvement at all. Capitalism in reality is no government involvement that doesn't favor businesses.

    If I had to take a guess I'd say state and county would be the first to go because they are cheaper to buy off than the Senators and Congressmen in DC. But that's the cynical side of me talking.
     
  19. Peace macrumors Core

    Peace

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    #19
    If he were playing fair he would have mentioned the whole industrial complex in the united states because every company does this.
     
  20. ucfgrad93 macrumors P6

    ucfgrad93

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    #20
    Agreed. I thought they just deleted/locked the thread instead of moving it when the OP can't participate.

    ----------

    Agreed. Nevada state officials granted the tax breaks. They are the ones to blame.
     
  21. mcrain macrumors 68000

    mcrain

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    #21
    Conservatives giving our tax money away to corporations again...
     
  22. Rodimus Prime macrumors G4

    Rodimus Prime

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    #22
    Depends on the size of the city for local but state level it is just as bad if not in some ways worse than on the national level. They stack the deck there just as much.
     
  23. ucfgrad93 macrumors P6

    ucfgrad93

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    #23
    Yes, liberals never do that.:rolleyes:
     
  24. aristobrat macrumors G4

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    #24
    Also from the article: "Apple has also said it will invest $1 billion in the Reno area over the next decade."

    "Nevada Governor Brian Sandoval, who backs the deal, called the board's decision a "win" for the state, according to AP. He said that Apple having a bigger presence in the state will encourage other business to come to Nevada."

    So for $89M, they get $1B of money spent in their state, plus land a tier-one tech company that stands to attract similar companies to their state?

    Doesn't sound like a particularly bad cost/benefit ratio.
     
  25. LethalWolfe macrumors G3

    LethalWolfe

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    #25
    Feel free to call me a Debbie Downer but I guess we'll just have to wait and see if 1 billion really gets invested over the next 10yrs. My guess is that's a pie in the sky number to begin with and well before a decade rolls around Apple moves, or threatens to move, in order to get more tax breaks (and/or a new deal that absolves them of pending financial obligations). Apple wouldn't be the first or only company to sign a front loaded contract that has enough wiggle room in it to let them out before their obligations come to pass.
     

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