tag:blogger.com,1999:blog-6685155377705481833.post3644375923513493982..comments2023-09-22T03:17:50.469-04:00Comments on Middle Class Political Economist: Tesla Deal Even Worse Than First ThoughtKenneth Thomashttp://www.blogger.com/profile/05747704671007690674noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6685155377705481833.post-7334077213398547922014-09-26T14:17:33.451-04:002014-09-26T14:17:33.451-04:00That makes sense.
I suppose one could argue that...That makes sense. <br /><br />I suppose one could argue that the investment tax credits and sales tax credits are somewhat correlated with jobs. Presumably if the company is only hiring half of the planned staff, then production is likely lower, and they're not going to put in all of the investment originally planned, and so the value of the sales and investment tax credit is *presumably* lower. Likely not proportionally lower but somewhat lower. <br /><br />I'm doing some interesting work on estimating what I called the "expected grant value" (in contrast with what is typically reported in contracts and media which I call the "maximum grant value"). We can talk offline about this, Kenny, but I think this Tesla example would be an interesting way to look at "expected dollar per job" - basically a probability weighted average of likely scenarios.Chrishttps://www.blogger.com/profile/03350790738181743539noreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-28824271102270545902014-09-22T16:32:23.733-04:002014-09-22T16:32:23.733-04:00Or maybe the jobs' multiplier is more accurate...Or maybe the jobs' multiplier is more accurate than critics claim? http://www.rgj.com/story/news/2014/09/20/fact-checker-tesla-jobs-indicator-high/15858081/Mark Robisonhttps://www.blogger.com/profile/03030583238007984102noreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-19210245223061995942014-09-18T14:24:21.466-04:002014-09-18T14:24:21.466-04:00Good point. The deal provides a tax credit of $12,...Good point. The deal provides a tax credit of $12,500 per job for up to 6000 jobs. To calculate the cost per job if Tesla only creates half (I think Prof. Florida is using 3250) the jobs, you would double the figure, then subtract $12,500. This is because the biggest pieces of the deal, the sales and property tax breaks, and the investment tax credit, are not based on the number of jobs created. So it's not quite double per job, but very close to it.Kenneth Thomashttps://www.blogger.com/profile/05747704671007690674noreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-78175282997736953232014-09-18T13:49:47.603-04:002014-09-18T13:49:47.603-04:00In Richard Florida's article, he notes that: &...In Richard Florida's article, he notes that: "Looking just at the direct 6,500 jobs ... the number jumps to more than $192,000 per job. And it the plant ends up creating only half that amount... the figure balloons to ... $385,000 per job."<br /><br />Does this assume that the entire $1.25B will be paid to Tesla even if only half of the targeted jobs (6,500? 6,000?... now including indirect jobs...) are created? So basically the job targets are meaningless from a clawback and disbursement perspective?Chrishttps://www.blogger.com/profile/03350790738181743539noreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-73383339265375297812014-09-17T16:29:47.016-04:002014-09-17T16:29:47.016-04:00The corporations are always playing one state agai...The corporations are always playing one state against another for the best tax breaks and the most giveaways, all to the determent of the taxpayers, who get nothing in return but budget shortfalls and less services. The auto companies (and Boeing) moved to non-union Southern states. If they're not offshoring to low-wage countries, they're automating and robotizing. As with Tesla in Las Vegas, the same thing might happen with a new soccer stadium downtown. All this is part of the race to the bottom for the U.S.<br /><br />When America becomes the Next Emerging Market ...<br /><br />http://bud-meyers.blogspot.com/2014/08/when-america-becomes-next-emerging.htmlBud Meyershttps://www.blogger.com/profile/02065020063363023395noreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-52858119293535512552014-09-17T15:37:06.955-04:002014-09-17T15:37:06.955-04:00Exactly how high do Corporate Profits have to get ...Exactly how high do Corporate Profits have to get before we stop giving them tax breaks?!<br /><br />http://research.stlouisfed.org/fred2/series/CP/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-23527717781168520422014-09-17T01:23:04.283-04:002014-09-17T01:23:04.283-04:00I'm all for electric cars, but for the country...I'm all for electric cars, but for the country as a whole, it basically doesn't matter which state the batteries are built in -- there's only the tiniest bit of difference it can make; nothing to justify a $1.25 billion subsidy to be in Nevada rather than California or wherever.Kenneth Thomashttps://www.blogger.com/profile/05747704671007690674noreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-9133403345792675022014-09-16T14:04:50.418-04:002014-09-16T14:04:50.418-04:00Most corporations are soulless blood suckers. I h...Most corporations are soulless blood suckers. I hate to defend any of them. Tesla's been getting screwed by some of the other states trying to keep sales of the cars out. Although these are sporty cars, they are electric. Tesla is building fast-recharging infrastructure for electric cross-country travel. Yeah it would be great to generate the tax revenue now but find a way to collect after success is assured at the pump.Anonymousnoreply@blogger.com