$77 million tax break, one new permanent job: JPMorgan data center deal sparks backlash

[Endymio]

I am missing nothing… I am arguing against the “corporations don’t pay taxes” as this isn’t true. Yes, taxes paid by businesses are passed down to consumers - as are all costs… otherwise they wouldn’t make money.

If your company reimburses you $100 for a business lunch -- but then takes $100 out of your next paycheck to compensate -- did the business actually pay for that lunch, or did you?

 

[Endymio]

Out of curiosity I did some really rough back of the envelope calculations on if this was the case.
... For a company to save one hundred thousand dollars in taxation they would have to roughly raise their wage cost by a million dollars. Didn't matter how many at what rate of pay it would cost roughly 1 mil to save a 100,000.

You should sue that envelope back -- and the pen you calculated it on -- for incompetence. The maximum corporate tax rate in CA is 31%, not 10%. But that's not the proper calculation: if a corporation saves $100K on taxes, it now has the full 100% to spend elsewhere.

How many grants and tax breaks end up being passed on to the executive as bonuses, or stockholders as dividends?

Even (or especially) in Socialist Canada, when a company "passes on" money to employees or stockholders, they then pay income tax on that money. I'm sure you understand that. Furthermore, since the top personal income tax rate in CA is *higher* than the average corporate rate, passing on the money results effectively in more taxes being collected, not less. Plus, it doesn't mean low- and middle-income citizens pay those corporate taxes in the form of higher prices.

 

[Endymio]

Recall that the tax break was granted by a committee, not by voters.

Err, the entire point of voters electing government officials -- in this case local commissioners -- is the study the issues and make decisions like this.

... which voters decided what? And where are the financial statements of those committee members?

It's fun to allege bribery and corruption without a single shred of evidence to support it, eh?

 

[Gezzer]

You should sue that envelope back -- and the pen you calculated it on -- for incompetence. And a few math teachers you had along the way.


Even (or especially) in Socialist Canada, when a company "passes on" money to employees or stockholders, they then pay income tax on that money. I'm sure you understand that.

Troll, go climb back under your rock please. I won't reply further and will report you if you engage any further.

 

[Squid Surprise]

If your company reimburses you $100 for a business lunch -- but then takes $100 out of your next paycheck to compensate -- did the business actually pay for that lunch, or did you?

That's easy... your company paid for your lunch. THEN, you paid the company $100... well, actually... the company just paid you $100 less than usual the next paycheck...

Here's a counter-example... I payed $30,000 in income taxes last year... but the company I worked for paid me $90,000 dollars first.... Does that mean I didn't pay taxes? Does that mean my company paid my taxes for me?

2 things can be true

 

[Endymio]

That's easy... your company paid for your lunch. THEN, you paid the company $100... well, actually... the company just paid you $100 less than usual the next paycheck...

Here's a counter-example... I payed $30,000 in income taxes last year... but the company I worked for paid me $90,000 dollars first.... Does that mean I didn't pay taxes? Does that mean my company paid my taxes for me?

2 things can be true

I confess this pretzel logic escapes me. The money paid for your taxes reduces *your* ability to buy goods and services for your own consumption. You pay taxes; companies do not.

Note: every year, your employer not only pays your salary, but a FICA match of 7.25% to the federal government. Meaning that -- in addition to all the corporate taxes you're indirectly paying, you're also paying an additional 7.25% of your salary in direct federal income tax, above and beyond what appears on your Form 1040.

 

[Squid Surprise]

I confess this pretzel logic escapes me. The money paid for your taxes reduces *your* ability to buy goods and services for your own consumption. You pay taxes; companies do not.

Note: every year, your employer not only pays your salary, but a FICA match of 7.25% to the federal government. Meaning that -- in addition to all the corporate taxes you're indirectly paying, you're also paying an additional 7.25% of your salary in direct federal income tax, above and beyond what appears on your Form 1040.

Well, I’m Canadian… my point still holds though… taxes get paid - it’s a matter of semantics whether you or your company actually pays the taxes - they get paid all the same.

But… if a company DIDN’T pay taxes - why would they need tax breaks?

 

[Gravitytr1]

Permanent employees are also getting outdated so that makes sense.

Life is much better if you don't have to worry about hiring, health insurance, workers' comp, payroll taxes, severance and a whole host of other concerns.

Better for those who used to be employers, I mean.

If your (not you, I mean the rich parasite class) life is soulless, purposeless and so meaningless that all that matters in your daily life is chasing numbers, then that life is much worse than the effects of such actions on billions worldwide.

The parasite class is going to eventually eat itself up. What's unfortunate is that they can't contain their evil to themselves and they have to forcefully share it with the people around them