News for hackers. Stuff that matters.
Re:Paradise Papers: Dear Tim Cook by belorn on Wednesday November 08, 2017 @08:26AM (#15652137)
Not only do they get tax cuts and cheap real estate from governments, they also get direct money.

When google decided to create a data center in Sweden, the Swedish government gifted them $20 million in "establishment support". Money sent from the tax payer directly to the bank account of Google. Reason? So that google would pick Sweden. The politicians argument is that Sweden grain prestige if google has their data center here so its worth spending those millions. Its a bribe in all the sense of the word except that its a game between nations.

Re:Paradise Papers: Dear Tim Cook by secfirstmd on Wednesday November 08, 2017 @08:29AM (#15652163)
Ireland has the same problem. Attracting large amount of data centres which don't really create all that many jobs. It also then shifts the costs because the electricity demand is so huge and it strains infrastructure.
Re:Paradise Papers: Dear Tim Cook by peoplewindow on Wednesday November 08, 2017 @12:09PM (#15654387)
Taxpayer incentives to build datacenters are a good example of poor decision making by governments, and poor allocation of tax money. Seems like an argument to drop corporation taxes rather than increase them.
Re:Paradise Papers: Dear Tim Cook by slimshady94 on Wednesday November 08, 2017 @08:32AM (#15652175)
Wouldn't that increase the number of highly skilled individuals working in Sweden, who pay more tax/increase the jobs available? Which is a good thing?
Re:Paradise Papers: Dear Tim Cook by akoncius on Wednesday November 08, 2017 @10:23AM (#15653279)
how many employees are hired in such data centers?

Found article [1]: "Now, news outlet DT cites sources which have told the publication that Google was in fact the international web player readying to set bases at the Horndal campus and generate up to 300 permanent jobs."

So $20mm to create 300 jobs? I wouldn't say that ROI is very good in this case. Of course, there were some one-time employment such as contract for building data center and so on, but still I don't see it as a good investment.

Another data center example [2]: "Facebook will build a $750 million data center in the tony northeast Columbus suburb." ... "Peterson expects to employ about 100 workers at the data center."

And for that , government gave Facebook this: "Facebook has a 30-year property tax break on its land, 345 acres on Ohio 161, New Albany Mayor Sloan Spalding said. From the state, Facebook scored a 2-percent, 10-year Job Creation Tax Credit and a 100-percent and a 15-year data center sales tax exemption."

I don't see it as a fair deal for 100 new job positions.

[1]: https://data-economy.com/google-set-follow-facebooks-footste...

[2]: http://www.cleveland.com/open/index.ssf/2017/08/facebook_to_...

Re:Paradise Papers: Dear Tim Cook by belorn on Wednesday November 08, 2017 @08:59AM (#15652416)
Lets imagine we made a general law and applied this.

Any company who moved X number of highly skilled individuals to Sweden that's equal to the number of those working in that data center get $20 millions.

Personally I doubt that would work. Such action can only exist as a special deal between the Swedish government and companies which politicians believe brings enough prestige to be worth it.