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   Technology StocksThe *NEW* Frank Coluccio Technology Forum


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To: Frank A. Coluccio who wrote (46719)2/18/2019 6:23:16 AM
From: elmatador
   of 46784
 
Some clear thinking about Amazon’s ‘shocking’ tax incentives
Simon Black

February 15, 2019

Sovereign Valley Farm, Chile



Amazon made big headlines yesterday when it announced it was walking away from its plan to build a new headquarters in New York City.

The company was under intense pressure from the media and politicians who were angered that New York City’s local government was giving away too many tax incentives, purportedly worth around $1.5 billion.

(Including the state government, the total tax break was around $2.8 billion.)

People had some ridiculous idea that NYC Mayor Bill de Blasio was going to hand a check for $1.5 billion over to Jeff Bezos, already the richest man in the world.

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That’s complete nonsense.

The biggest part of the package was a tax credit that would vary based on how much Amazon paid its employees; it was capped at $1.2 billion over ten years.

Let’s assume it’s the maximum level– that works out to be $120 million per year.

Now, in exchange for that incentive, how much tax would Amazon pay?

There’s been a lot of media attention about the fact that Amazon has hardly paid a dime in federal income tax over the past few years.

In both 2017 and 2018, Amazon’s federal tax bill was precisely $0.00.

But state and local tax laws are different than federal laws. And tax breaks that can reduce a company’s federal bill don’t always apply at the state and local levels.

In 2017, for example, Amazon paid $250 million in state and local tax in Washington, its home state.

New York tax rates are MUCH higher than they are in Washington. In fact, New York City has three different methods of calculating corporate tax, just to make sure that big companies pay up.

So even if Amazon’s New York tax bill were just HALF of what it paid in Washington, then New York City would have been recouping more than 100% of its tax incentive EVERY YEAR.

On top of that, the city would have reaped additional tax revenue from countless other sources.

For example, many of the new Amazon jobs would have gone to people relocating to the city.

Even if just 10% of the 25,000 workers (earning $150,000 per year) would have become residents of New York, the city would have earned another $12 million per year in individual income tax revenue.

Property tax revenue would have been another $20 million per year– JUST on the Amazon campus.

Then there’s the city’s nearly 6% hotel occupancy tax. According to company data, Amazon employees and guests accounted for 330,000 hotel room-nights in the Seattle area in 2017.

At roughly $300 per night for a decent New York City hotel, that would have been nearly $6 million in additional annual tax revenue.

None of this, of course, accounts for the gargantuan, indirect economic activity that would have been generated.

Just think about all the real estate agents who would have earned commissions on sales or rentals. Or the waiters and waitresses who would have earned tips at nearby restaurants. Or the countless small businesses that would have benefited.

25,000 Amazon employees would have brought billions in annual disposable income to the city, resulting in tens of millions of dollars in additional tax revenue.

The company itself estimated that they it generate an average $500 million per year in tax revenue for New York City.

Even if Amazon wildly overestimated, and the real benefit was less than half of that figure, New York City would have still earned more than a 100% return on its tax incentive investment.

(And that doesn’t even count the non-financial benefits from the primary school Amazon would have helped build, the tech incubator they were planning, parks and green spaces, or environmentally friendly construction.)

This is incredible. To put that in context, New York City’s pension funds earned an 8.7% return in Fiscal Year 2018. And they’re practically doing a victory lap for knocking out such stellar results.

Yet while they’re pumped beyond belief to earn 8.7%, they had a chance to earn literally 100% or more with Amazon.

And New York City wouldn’t have even had to put up much money; remember, the vast majority of the incentive plan was a tax CREDIT, i.e. Amazon would have merely paid less in tax each year to the local government.

So in terms of a ‘cash on cash’ return, it was nearly infinite. It’s hard to see this as a bad investment.

Yet somehow Socialism won the day.

Ignorant masses, idiotic reporters, and their devious political heroes banded together to thwart prosperity in an endless Shock and Awe campaign against Amazon until the company finally pulled the plug on New York.

What’s probably more revolting is that these people are actually excited. They think that chasing away a near infinite return on investment is a major victory.

This is the direction that the country is turning.

Your fellow comrades don’t make decisions anymore based on facts. There is no rational analysis. It’s all emotion.

They get fired up because a rich guy might benefit. It doesn’t matter that the Amazon deal would have been a much-needed economic boost. They don’t even bother to think. It’s just straight to Twitter.

The same people are quick to say that New York doesn’t need Amazon… the city is going to be just fine.

Wrong again.

As we’ve discussed before, New York City is in a bad place financially. The pension is underfunded by about $70 billion, and the city government runs a multi-billion dollar budget deficit.

Just a few weeks ago, in fact, city officials announced that tax revenues so far this fiscal year were $500 million below forecasts.

Well isn’t that ironic! New York’s $500 million budget hole is the exact estimate of what Amazon would have contributed each year to the city’s treasury.

sovereignman.com

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To: Peter Ecclesine who wrote (46723)2/21/2019 7:53:14 AM
From: Peter Ecclesine
1 Recommendation   of 46784
 
The Cisco Feb 2019 Mobile Forecast is available
cisco.com

The race to 5G wireless tech is on. A report finds Americans may have an early lead. By Brian Fung, Washington Post, February 19

washingtonpost.com


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To: Peter Ecclesine who wrote (46733)2/21/2019 8:28:54 AM
From: Peter Ecclesine
   of 46784
 
PS a 4k x 30 video is 7 GB an hour, and compresses to 2 GB an hour, or 4.5 Mbps

cept.org

cept.org
cept.org

video compression algorithms keep improving (halving every 11 years)

en.wikipedia.org

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From: Elroy Jetson2/21/2019 2:25:56 PM
   of 46784
 
Tweeting from his fantasy-world hideaway, president Trump urges telecom companies to install 6g networks as soon as possible.

mobile.twitter.com

I want 5G, and even 6G, technology in the United States as soon as possible. It is far more powerful, faster, and smarter than the current standard. American companies must step up their efforts, or get left behind. There is no reason that we should be lagging behind on.........
.

No doubt he also wants to see us jump from the current G networks to H or I, or why not Z. Someone is going to be fired if we're not quickly using 6Z.

"It's so easy, why aren't we using 6Z networks right now ? ? ?

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From: elmatador2/21/2019 11:55:07 PM
   of 46784
 
U.S. won't partner with countries that use Huawei systems - U.S.'s Pompeo

WASHINGTON (Reuters) - U.S. Secretary of State Mike Pompeo on Thursday warned that the United States would not be able to partner with or share information with countries that adopt Huawei Technologies Co Ltd systems, citing security concerns.

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In an interview on Fox Business Network, Pompeo said nations in Europe and elsewhere need to understand the risks of implementing Huawei’s telecommunications equipment and that when they did, they would ultimately not use the company’s systems.

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“If a country adopts this and puts it in some of their critical information systems, we won’t be able to share information with them, we won’t be able to work alongside them,” Pompeo said.

“We’re not going to put American information at risk,” he added.

Asked about European nations pushing back on U.S. calls to ban Huawei, Pompeo said the United States has been talking to other nations to make sure they “understand the risk of putting this Huawei technology into their IT systems” and that “they’ll make good decisions when they understand that risk.”

Reporting by Susan Heavey and Makini Brice; Editing by Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.

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From: ftth2/25/2019 8:11:50 PM
   of 46784
 
1TB microSD cards are now a thing
LINK

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To: ftth who wrote (46737)2/25/2019 11:04:09 PM
From: Elroy Jetson
1 Recommendation   of 46784
 
All the more reason for all phone makers to emulate Samsung and build phones with an SD slot.

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To: Frank A. Coluccio who wrote (46721)2/27/2019 4:18:33 AM
From: elmatador
   of 46784
 
Europeans trying to accommodate Huawei will delay 5G. They will bring back the old regime of the 70s.

linkedin.com

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From: Elroy Jetson2/27/2019 4:26:38 PM
   of 46784
 
Sprint has a lot of high-frequency capacity to carry fast data but far too few transmitters which will have to be densely located to make use of this frequency.

So Sprint is already implementing a sneaky and curious new program to greatly increase their number of high-frequency small cell transmitters by offering their customers a free "magic box" for their home or business. They want you to place your "magic box" next to a window - not for you, but for everyone outside of your building.

A Sprint "magic box" is a cell site which connects to your network and uses your electricity.

It provides you faster wireless data service, along with everyone else within a block or two. If you request a "magic box" but do not plug it in or return it, Sprint will charge you $140.

So long as you keep your "magic box" fed and connected to your network it's "free" - but it can't improve your voice call quality, only provide a faster data connection because unlike T-Mobile, the Sprint network does not implement VoLTE voice over data, currently (Voice over LTE) but with a new phone Voice over 5G.

The 260,000 Sprint "magic boxes" already distributed are 4G-LTE but 5G "magic boxes" are a few months away.

MAGIC BOX - volunteer to become part of Sprint's network - sprint.com


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To: Elroy Jetson who wrote (46740)2/28/2019 3:23:51 AM
From: elmatador
   of 46784
 
FCC Chairman Ajit Pai says US tops all other countries in 5G technology race

The head of the Federal Communications Commission says the U.S. is leading the world in the development and deployment of 5G technology.

"In my view, we're in the lead with respect to 5G," FCC Chairman Ajit Pai said to the Wall Street Journal in a interview during which he expressed his pleasure with the way telecommunications companies are developing the infrastructure necessary for the new wave of mobile broadband across the country.

The administration has viewed the deployment of the technology as a step in safeguarding national security interests. In the middle of the race for 5G is a technological competition with China for global 5G supremacy.

The Mobile World Congress in Barcelona has proved to be a theater for that 5G race with international delegations sent from around the world ready to begin partnership talks. The FCC chairman, who forms part of the U.S. delegation sent to Barcelona, has been jockeying potential suitors and is meeting with allies to set a contractual framework putting U.S. companies at the forefront of global deployment of 5G technology. At the conference, Chinese telecommunication giant Huawei unveiled their new 5G-capable devices and announced a 5G partnership with the United Arab Emirates.

“It’s much more of a concrete discussion now because we really are on the doorstep of 5G deployments at scale,” Pai said. “In past years, when 5G was much more of an abstraction to some, I suppose both the potential and challenges of 5G networks weren’t as concretely presented to regulators and businesspeople alike.”

Both the federal government and firms in the U.S. technology industry have been spurred by Trump to ramp up the production of 5G-capable technologies and the deployment of the 5G broadband networks across the country. Last week, the president expressed that he wanted more U.S. companies to move towards the adoption of 5G technology or risk "getting left behind."

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