Seriously, 50bn SecondMarket cap company looking to save $2.8 million in taxes?
$2 million here, $3 million there, sooner or later it adds up to real money. A $50 billion company doesn't stay a $50 billion company by blowing $2.8 million on nothing.
Sadly, that's a lesson the California gov never learned. If they had, they might not be wasting similar amounts of money on pensions for criminals.
You can find examples of some public employees getting outrageous pensions but these examples are at not typical. Given that California has a huge budget shortfall are you suggesting that this shortfall is due mostly to outrageous pensions?
We presently live in a system where states often times compete with each other to offer incentives to attract factories or other operations that employ a lot of people. These tax incentives are paid for by the people of the state, that is, by the workers. It's a perverse system. Maybe companies should be willing to pay their share of national defense, roads, etc.
Yes, pensions are a major part of the shortfall but I specifically said outrageous pensions payouts. It remains to be shown that the shortfall comes from outrageous pensions. I've noticed that often times people mention the unfunded pension liabilities in California and then point to a few extreme examples. Are the extreme examples causing the problem?
There are structural problems with California governing system that give more plausible reasons for its present problems. To go from Facebook setting up a data center in order to save a few million dollars to an extreme pension abuse example is very weak.
Don't forget the unfunded part of the current pensions, this has been a problem building over multiple years and probably won't have and easy solution.
California is facing potentially catastrophic future problems from unfunded pension liabilities [1]. And ridiculous numbers of blue-collar state positions get six figure salaries and the generous pensions that go with them. It would be nice if we could do that, but the math just doesn't work, which is why California's problems are only going to get worse unless drastic action is taken. And it won't be until things get really bad.
sure, so now Oregon will loan additional $2.8M here and $3M there until it itself becomes the California and comes back to FB asking for money. Of course by then there will be plenty of bankrupt states (countries even?) willing to offer tax breaks to help wonderful companies like FB to relocate.
Wow, how did Alaska manage to outspend pretty much everyone by 100+% ? Bridges to nowhere and stuff like that?
Anyway, this is getting offtopic since this $2.8M p.a. is breadcrumbs compared to what FB employees will be paying in tax to California and Washington after the liquidity event. And it's not like THEY'll be moving from Silicon Valley any time soon.
$2 million here, $3 million there, sooner or later it adds up to real money. A $50 billion company doesn't stay a $50 billion company by blowing $2.8 million on nothing.
Sadly, that's a lesson the California gov never learned. If they had, they might not be wasting similar amounts of money on pensions for criminals.
http://www.newsoxy.com/world/disgraced-sheriff-pension-13760...