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Travis County Gives Final Approval to Tax Incentives for Apple Expansion in Austin

The Travis County Commissioners Court has just given official approval for a package of tax incentives designed to secure Apple's commitment to expand its Austin, Texas campus and add over 3,600 new jobs at the site. The approval comes after development officials expressed concern last week that the deal was "in peril" as concerns over loopholes in the contract delayed approval by the county.


Apple's campus in Austin, Texas (Source: Flickr/The Pug Father)

Prior to today's meeting of the Commissioners Court, the Austin American-Statesman reported on some of the tweaks to the contract, including language requiring Apple to pay the lowest-salaried 10% of its new employees at the site an average of $35,000 per year. Contractors, which may comprise up to 25% of the new hires, will be paid a minimum of $11 per hour.

Apple governmental affairs representative Jason Lundgaard was on hand for the session and answered several questions for the county commissioners.

Travis County is the final governmental entity to approve its portion of the total tax incentive plan, which is estimated to yield $35-36 million for Apple in exchange for adding the jobs and facilities. The State of Texas and the City of Austin previously approved their pieces of the deal.

Top Rated Comments

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29 months ago
11 bucks an hour. People at In n Out flipping burgers start at 10.
Rating: 20 Votes
29 months ago

So, Apple continues screwing the taxpayers/counties/states etc. Good for Apple. Bad for everyone else. I guess 9.8% tax rate was too high for Apple.


In what way are they "screwing" taxpayers/counties/states? Are you referring to the NYtimes article that was based off information that was proven incorrect before the article was even written? Or are you basing your claim off of apple getting tax incentives to bring a few thousand jobs to a new area.
Rating: 18 Votes
29 months ago
So, Apple continues screwing the taxpayers/counties/states etc. Good for Apple. Bad for everyone else. I guess 9.8% tax rate was too high for Apple.
Rating: 17 Votes
29 months ago
Apple got a sweet deal out of that one.
$35 million in tax breaks for creating low level tech jobs.
It will take decades for the City/County/State to break even on the deal.
Rating: 16 Votes
29 months ago
Apple shouldn't require tax incentives.. they have enough money without leaching off tax payers.

BTW - it isn't being anti apple, its being realistic.. they have more money than god at the moment. They don't need incentives, just use their own hoard of money.

Average pay of $35,000? Low paying jobs.. sure it'll help the local economy. But ultimately, its like Apple ( or any other company ) have the attitude that they are doing the local area a favour by creating new jobs.
Rating: 15 Votes
29 months ago
Whew!!!

Glad they got that figured out. I was worried that apple might not be able to survive without the $35 million government subsidy.
Rating: 14 Votes
29 months ago
new mac pros today?
Rating: 13 Votes
29 months ago

Way to cherry pick meaningless statistics! :rolleyes: Taxes are generally calculated on income, not revenue.


The statistics ls always meaningless for those who can't understand it. NYT reported Apple tax numbers as percentage of their income (profits) not revenue. Exact quote (http://www.nytimes.com/2012/04/29/business/apples-tax-strategy-aims-at-low-tax-states-and-nations.html?ref=business): "As it stands, the company paid cash taxes of $3.3 billion around the world on its reported profits of $34.2 billion last year, a tax rate of 9.8 percent." As percentage of their revenue the number would be close to 0%.

All those defending Apple by saying that high taxes prevent Apple from investing in job creation, R&D etc. should just shut up. Nobody taxes that.

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First level tech support requires about the same level of training.


Would you also argue for giving incentives to McDonalds' of this World for opening their burger joints?
Rating: 9 Votes
29 months ago

In what way are they "screwing" taxpayers/counties/states? Are you referring to the NYtimes article that was based off information that was proven incorrect before the article was even written? Or are you basing your claim off of apple getting tax incentives to bring a few thousand jobs to a new area.


Yes that article to which Apple responded (http://www.nytimes.com/2012/04/29/business/apples-response-on-its-tax-practices.html?_r=1)by claiming that they created more than 500K jobs in USA and not even trying to deny any of the article claims. The entity that needs those jobs the most is Apple themselves. Every single employer in USA does exactly that - brings jobs. But not all of them get the incentives. And Apple is the last company in USA that needs the incentives.

BTW, could you provide a link to the information that proves that proves NYT wrong?

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that is the lowest 10% receiving an average of $35,000 a year not the average of all new jobs paying $35,000. I'm not sure what the new jobs will be for but if its just phone level 1 support $35-40,000 is not that unreasonable to pay somebody to read questions off a screen


It is. What is unreasonable is to give Apple incentives to create those jobs in a situation when Apple is the one who needs those jobs the most.
Rating: 9 Votes
29 months ago
If it was Exxon getting those tax incentive you know all the Apple fanboys here either would be indifferent or be angry at them. Jeez...:rolleyes:

Apple needed those jobs - they would go SOMEWHERE. It only hurts the taxpayers to provide additional tax breaks to a large filthy rich company who alreadly pays almost no taxes. I don't see how the local environment wins. More jobs yes for more taxes paid per individual. Yeah, I can do that to.

Tony
Rating: 9 Votes

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