Quote:
Originally Posted by Azure
50,000 people x $100,000 per year medium income for the work they do is $5 billion in payroll per year.
At a 30% income tax rate alone, you are looking at $1.5 billion at potential tax revenue. I know a lot of these people that Amazon will hire are already employed somewhere in Canada, so lets say you create 25,000 new net jobs. That is $750 million per year in income tax. Now start figuring GST, property tax, payroll tax, corporate tax rates, and then start figuring in some of the charity and community work that companies like Amazon promote in the cities where they have a massive workforce.
When you start adding all of them together I don't see how a $7 billion dollar deal is bad. Hell, I haven't even figured in the construction jobs created by building their headquarters and all the tax revenue around that.
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I think your average salary estimates are very high for a company like amazon but more importantly I think you’re ignoring the fact that a big chunk of the tax revenue generated by amazon employees will go to the infrastructure improvement and maintenance costs associated with adding 50K people to the city. Meanwhile amazon will get to stay here tax and rent free while making a profit off the operation that would need to be big enough to justify employing and paying the salaries of 50k people.
Keep in mind too, it’s very easy for amazon to promise X amount of jobs in an effort to get multiple cities falling over themselves to offer tax breaks and other incentives(upfront) knowing full well that in the event they fall short on their promise there would be very little that a city could do about it retroactively.