News for hackers. Stuff that matters.

A comment on Amazon rolls out machines that pack orders and replace jobs. Parent comment

Re:Amazon rolls out machines that pack orders and replace jobs by drewmol on Monday May 13, 2019 @10:26AM (#19899534)
Another negative impact of losing those jobs is that those folks paid income tax. When the operational cost of these tasks are transferred from payroll to capital expense the effective federal tax rate of what was payroll is lost (a ballpark 1.7% - 8.7%[0]) and the added automation cost is used as a deduction on a ballpark -1% - 1%[1] corporate income tax.

[0]https://www.fool.com/retirement/2016/10/31/heres-what-the-av...

[1]https://www.vox.com/2019/2/20/18231742/amazon-federal-taxes-...

[ Parent | on HN ]
Re:Amazon rolls out machines that pack orders and replace jobs by fastball on Monday May 13, 2019 @10:46AM (#19899750)
Where exactly do you think those increased corporate profits are going?
[ Parent | on HN ]
Re:Amazon rolls out machines that pack orders and replace jobs by drewmol on Monday May 13, 2019 @12:08PM (#19900686)
So I'm misunderstanding the effect?

Is the outcome such that the reducion in payroll will lead to increase in profits and then pressumably that profit will be taxed at a minimum of long term capital gains rate when returned to shareholders?

[ Parent | on HN ]
Re:Amazon rolls out machines that pack orders and replace jobs by fastball on Tuesday May 14, 2019 @01:07AM (#19906919)
No, it's just that you are only now bringing in capital gains, when that's actually pretty important. If all these corporate profits are going to shareholders, who are then taxed on capital gains, don't you think that's a little bit higher than the 1% you were quoting?

So maybe if you actually finished doing the math instead of stopping in the middle, you'd see that automation isn't the tax loss you're making it out to be.

[ Parent | on HN ]
Re:Amazon rolls out machines that pack orders and replace jobs by drewmol on Tuesday May 14, 2019 @01:53PM (#19911933)
>So maybe if you actually finished doing the math instead of stopping in the middle

I'm glad we have you for this time, will finish the math next time ;-)

[ Parent | on HN ]