Does Nevada's 1.3 blns in Tesla Corporate Welfare Make Sense? (bankrupt, loan, 2013)

[blisterpeanuts]

6500 jobs is 6500 times better than zero jobs. It's simple math!

These opinion pieces and blogger rants calling it a "giveaway"--geeze what century are these people living in? None of them have ever invented anything or produced anything; they're just ringside critics.

I say, bravo to Nevada for showing a little common sense. And bravo to Elon Musk for having faith in American workers and not locating his plant in China.

[Mathguy]

Where does most state revenue come from anyway?

The Sources of State and Local Tax Revenues | Tax Foundation

For a typical state, about 70% comes from sales tax and property tax.

Nevada is still going to get a butt-load of tax income from this deal plus many of the other benefits cited.

People need to stop crying about give aways when a business is at least staying here in the US instead of off-shoring.

Heck, you want something to get mad about? How about the head of Obama's jobs council Jeff Immelt of GE lobbying for tax incentives to bring BACK jobs to the US that they off-shored previously.

[skugelstadt]

Trickle down economy. 6500 jobs means more cars being sold, groceries, fast food, nail salons, furniture stores, more houses being built ( not just jobs but property tax revenues), more Home Depot type stores, the list goes on and on.

[MrWillys]

Nevada didn't give anything to Tesla other than tax exemptions, and in return are getting 37.5 million from Tesla into the local schools. As others have said the employee dollars will boost our economy, amd most likely increase my home value.

[armourereric]

I do not know the current status of Nevada's real estate scene but if they land Tesla, would it not engender housing demand bringing median prices back or in excess or the pre crash years? Would not the resulting property tax revenue increase be enormous?

[ScoopLV]

Originally Posted by armourereric

I do not know the current status of Nevada's real estate scene but if they land Tesla, would it not engender housing demand bringing median prices back or in excess or the pre crash years? Would not the resulting property tax revenue increase be enormous?

Nevada is, for all intents and purposes, two states. There's Southern Nevada and then there's "everything else." Southern Nevada generates the lion's share of the tax revenue and then sends it north to Carson City. Carson City then distributes the tax money to a bunch of ranchers who have the gall to lecture Southern Nevadans about fiscal responsibility.

I'm glad Tesla will be in Nevada. But it really doesn't matter where the tax money in Nevada comes from. Carson City is going to waste most of it, anyway. This is the state that subsidizes tiny rural airports to the tune of $1,500 per passenger, per flight.

[cdelena]

The direct payoff for the economy usually cannot be compared favorably with the cost of the tax breaks offered. Politicians are usually counting on indirect or related development to justify their decisions. Politicians are often wrong, especially on financial decisions.

Originally Posted by cdelena

The direct payoff for the economy usually cannot be compared favorably with the cost of the tax breaks offered. Politicians are usually counting on indirect or related development to justify their decisions. Politicians are often wrong, especially on financial decisions.

Explain to us how having no new factory, no new jobs, and no housing market boost and no consumer spending boost is better than having a new factory that provides thousands of jobs and allows thousands of people to buy houses and cars and pay taxes?

If Nevada doesn't offer a good deal to Tesla, they'll simply head to some other state and Nevada will get nothing. Nothing < something.

[Lowexpectations]

Originally Posted by cdelena

The direct payoff for the economy usually cannot be compared favorably with the cost of the tax breaks offered. Politicians are usually counting on indirect or related development to justify their decisions. Politicians are often wrong, especially on financial decisions.

Can you explain the math behind your post? If I give you nothing and you build a huge factory, employ thousands, increase tax revenues, reduce unemployment or underemployment where the math ends up being unfavorable? Currently Nevada isn't getting anything from Tesla and it will in the future

[pvande55]

While tax giveaways are rarely a good investment, this at least doesn't cost the State anything if the plant closes after a year. And the construction would stimulate the economy. The provision allowing Teslas to be sold there is also critical. Texas also bid for the plant, but does not allow that.