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					                                                      Present value of annual
Present value to state of                               income to California
  California of Amazon    Present value to state of   residents under Amazon
        proposal          California of current law           proposal
        $229,538,846.33          $2,890,223,066.75          $2,584,873,630.98
Jobs growth       Annual      Spending / Sales tax Discount   2015 Annual
rate per year inflation rate   income      rate      Rate       Income
           1%              0%        90%        8%       4%         $25,000
Annual Amazon sales tax
under current California
          law
           $200,000,000
DO NOT CHANGE THIS SHEET!! If the taxable income is
         But not                              Of amount
Over                Tax is
         over                                 over
      $0    $14,248        $0.00 Plus  1.25%             $0
 $14,248    $33,780      $178.10 Plus  2.25%        $14,248
 $33,780    $53,314      $617.57 Plus  4.25%        $33,780
 $53,314    $74,010    $1,447.77 Plus  6.25%        $53,314
 $74,010    $93,532    $2,741.27 Plus  8.25%        $74,010
 $93,532 And over      $4,351.84 Plus  9.55%        $93,532
                    Assumption
California income tax rates are indexed for
inflation. Therefore, income tax revenue is
assumed to remain constant. The married filing
jointly table was used. It's about 2/3 of the way
down the web page cited in D2.


Inflation rate assumed to be zero
Discount rate of four percent
Job growth rate assumed to be one percent per
year.
Spending as a percentage of income assumed to
be 90 percent.




Sales tax rate assumed to be eight percent.

Annual income of new workers in 2015 is $25,000.
Discount time interval assumes 7,000 jobs created
in 2015, discounting done back to today.

Estimates of annual sales tax revenue if sales tax
on Amazon goes into effect today.
Assumes all workers are newly hired from either
those currently unemployed or new entrants to
the California labor force. Implicitly, no in-
migration to take jobs.
This analysis ignores some potential sources of
government revenue, especially property taxes.
                          Affects




Income tax revenue per capita, assumes to be constant
for 20 years.


Income, spending, and sales tax revenue.
All present value calculations

Number of workers.

Total spending and sales tax revenue.




Sales tax revenue.
Total income, total spending, sales tax revenue, income
tax revenue.

All present value calculations.


Sales tax revenue under California law.
                     How to change it

Cell G5 uses the tax tables to calculate first-year income
taxes. Income is left as a variable, with each year's
income feeding into the tax calculation. Just copy this
cell down for the remaining 19 years.
If you change the inflation assumption, make sure you
read the previous assumption. You will probably want to
keep income tax revenue constant.
Your guess is as good as mine.

Your guess is as good as mine.
The 90 percent figure is a good long-run average for the
U.S. economy. Change it as you wish.

California has about a zillion different sales tax rates. The
actual sales tax revenue will depend on where the new
jobs are located. I threw up my hands and assumed eight
percent. Your guess is as good as mine.
If anything, $25,000 is low. Change the number as you
wish.
If you're not familiar with the NPV() function, better not
change this.
This is the amount Amazon is setting aside each year as
potential tax liability while lawsuits and referendum
initiatives go forward.
                                    Source




http://www.ftb.ca.gov/forms/2010_California_Tax_Rates_and_Exemptions.shtml




http://www.mercurynews.com/breaking-news/ci_18807177
              DO NOT CHANGE THIS Highest    Second     Third    Fourth     Fifth
    Year       SHEET!! Annual pay Bracket   bracket   Bracket   Bracket   Bracket
       2012
       2013
       2014
       2015              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2016              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2017              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2018              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2019              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2020              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2021              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2022              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2023              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2024              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2025              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2026              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2027              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2028              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2029              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2030              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2031              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2032              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2033              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02
       2034              $25,000    $0.00     $0.00     $0.00     $0.00   $420.02


Present
Values
           Total
Bottom    Income
Bracket    Taxes




  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02
  $0.00    $420.02

				
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posted:10/25/2011
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