Foxconn may build Iphone plant in PA - create up to 50,000 jobs... (Milton: insurance, unemployment)

[speagles84]

Originally Posted by bradjl2009

It sounds like this factory is many years from being operational. I heard they haven't even bought any land in Wisconsin for this plant yet, this thing is a long time from being a reality. At least there's the Shell Cracker plant in Beaver County which is supposed to start construction soon. I also believe they have announced business plans in the US in the past only to never do anything as well.

Fyi construction started over a year ago. I
The earthwork is complete and the foundations are going in soon.

[jtab4994]

Originally Posted by Duderino

Of course it's unreasonable to expect a business to be operating forever, but it that's not what criticism is getting at.

I think the point is for public incentives it's not unreasonable to tie-in a timeline for a grant/tax break, or phase the funding so that it's not given away all at once. There's a number of ways to structure such a program to make sure taxpayers are getting the most bang for their buck.

Sure, that's why I put "forever" in quotes. Most businesses operate under the accounting principle of the Going Concern, which means the business intends to operate for the Foreseeable Future. With a coal mine obviously the coal will be tapped out at some point, and I'm sure an iPhone factory building has a planned useful lifespan but they are operating today as if they will be operating tomorrow and so on.


Tax breaks that I've heard of are indeed limited to a certain time period and/or dollar amount. Even with New Jersey's Urban Enterprise Zones the cities have to re-apply for their 1/2-price sales tax status, and a handful of them were not renewed last year. Corporate tax breaks are not given in perpetuity that I'm aware of.


It's up to politicians to structure tax breaks to attract business and at the same time get "bang for their buck" (and I'm aware of the habit of politicians to think of tax bucks as theirs). For someone to take a broad swipe and simply say "tax breaks are typically ineffective" is lazy.

[Qwh]

I bet you it wont make iPhones but car electronics and that stuff because cars are made in USA and iPhones need to be made in China to sell well in China or Chinese will boycott Apple and so I will boycott apple as well

[bradjl2009]

Originally Posted by speagles84

Fyi construction started over a year ago. I
The earthwork is complete and the foundations are going in soon.

Thanks for the update. Wasn't sure since I haven't noticed many articles about it lately so wasn't sure what was going on with it.

[pman]

Originally Posted by jtab4994

From whose point of view?


The new coal mine that recently opened in Western PA was helped in part by a $3 million grant from the Wolf administration. From the point of view of the 100 workers who were hired, that tax break probably looks pretty effective.

from a taxpayer's point of view or from an economic point of view.

Originally Posted by jtab4994

OK, if that's the definition of "typically ineffective" then I disagree. The idea of opening a coal mine or an iPhone factory is that it's going to stay open for a very long time or "forever".

if factories stayed open forever, we wouldn't need jobs today.

there are instances where I believe incentives are appropriate even if they aren't effective at producing job growth. specifically, an area where the major or only wealth generators has closed. it can be a way to mitigate the impact of that closure to that particular region. it is not; however, a necessary component of statewide job growth and presents opportunity for corruption.

[pman]

Originally Posted by Qwh

I bet you it wont make iPhones but car electronics and that stuff because cars are made in USA and iPhones need to be made in China to sell well in China or Chinese will boycott Apple and so I will boycott apple as well

foxconn is taiwanese, i suspect to some extent this is a hedge against politics in china.

[pman]

https://www.1410wizm.com/index.php/h...s-for-25-years

[jtab4994]

Originally Posted by pman

from a taxpayer's point of view or from an economic point of view.

That's meaningless. There are a multitude of economic points of view. Karl Marx was an economist and so was Milton Friedman.

if factories stayed open forever, we wouldn't need jobs today.

there are instances where I believe incentives are appropriate even if they aren't effective at producing job growth. specifically, an area where the major or only wealth generators has closed. it can be a way to mitigate the impact of that closure to that particular region. it is not; however, a necessary component of statewide job growth and presents opportunity for corruption.

As I explained to another poster, factories indeed do not stay open "forever" (which is why I put it in quotes) but most businesses operate on the accounting principle of the Going Concern which means they operate as if they will stay in business for the foreseeable future. A factory employing 3,000 trained people is not going to pull up stakes after a 10-year moratorium runs out, and search for a "better deal" unless the local tax rates really go through the roof for some reason.

[BOCABOCA2012]

Originally Posted by BPP1999

Good luck but I hope you realize that if your small business is organized as a flow-through or sole proprietorship then PA has the lowest personal income tax of any state that has an income tax.

Wolf's budget proposal includes a long overdue cut to the corporate net income tax, from 9.99% to 6.49%, which would be much more competitive vs. other states. In fact, it would be lower than many of our neighboring and peer states. The cost of this would be that certain expenses paid to related parties would not be deductible on the tax return (such costs are not currently deductible by corporations in many other states that have lower CNI rates and higher job growth).

Everywhere I go in SEPA and also up into NEPA I see road construction where there are results at the end.

The grass is not always greener on the other side and I'm not sure you really know what you are talking about in regards to taxes. If you are going to move away from PA, do it to get away from cold weather.

Are you kidding me. PA has an terrible tax rate. What about property taxes those are nuts here. The personal 3.07 isnt what kills you and conceivably its not the smallest by the number for reitrees. In some states they give retirees a break when they hit 60 and it varies. Example I was in Georiga and they had a rate of 1 to 6 percent. When you retired your school taxes were no longer levied and that was a huge break for proerty owners. Cripes, the town taxes your business, the state taxes your business, the boroughs tax your business. Gas it high, electric is high. I agree PA scares people away. We have been here less than a year and have been taxed to death. Cripes the retirees are taking it in the rear. We are leaving ASAP. I have lived in about 10 other states for the military and my job after that. This is the worst and its my fault for not investigating it more. LOL Lord not sure what planet you landed here from. I mean really taxing the hell out of people on social security, sickening.

[BPP1999]

Originally Posted by BOCABOCA2012

Are you kidding me. PA has an terrible tax rate. What about property taxes those are nuts here. The personal 3.07 isnt what kills you and conceivably its not the smallest by the number for reitrees. In some states they give retirees a break when they hit 60 and it varies. Example I was in Georiga and they had a rate of 1 to 6 percent. When you retired your school taxes were no longer levied and that was a huge break for proerty owners. Cripes, the town taxes your business, the state taxes your business, the boroughs tax your business. Gas it high, electric is high. I agree PA scares people away. We have been here less than a year and have been taxed to death. Cripes the retirees are taking it in the rear. We are leaving ASAP. I have lived in about 10 other states for the military and my job after that. This is the worst and its my fault for not investigating it more. LOL Lord not sure what planet you landed here from. I mean really taxing the hell out of people on social security, sickening.

The retirees are taking it in the rear?? Do you have any idea what you are talking about? PA does not tax Social Security or any type of 401(k) or IRA distribution, assuming a person retires at the normal retirement age which most do. If anything the retirees are slamming it to the rest of us in PA.

Net profits from a business are taxed by the state at a whopping (sarcasm) 3.07% and by a municipality by usually another 1%. There may be a gross receipts tax on that business as well, usually 0.15%, which amounts to $150 on every $100,000 of gross receipts.

Property taxes can be high in some parts of the state but are pretty average for the most part as I understand. Did you do any research as to your real estate taxes before buying your house?