Detroit Mayoral Race 2017

[corktownyuppie]

More of your B/S post. You've been on this forum long enough to have seen this article which was posted a few months ago:

http://www.crainsdetroit.com/article...ity-income-tax

SO, "less than 15% of the occupants in Midtown and Downtown are paying 2.4% COD taxes". 15% of 7K is 1050 residents. I'll let them each make $100,000 a year. 2.4% of that [[I'll give them they all work and live in the City) is $14, 280,000. To cite your earlier example, you've just given a billionaire a tax break of $50 million, even $100 million, to collect $14,280,000. Shrewd, Steve.

I'm not taking a position on the structure of this [[or any other future) deal. I do, however, need to take a position on the math.


Giving a billionaire a $100 million tax break one time in order to collect $14,280,000 will pay for itself in 7-9 years, depending on what interest rates you are using. And that after its paid off, it's $14,280,000 [[and rising) every year after that.

Paying $100 one time in order to gain $14 per year with no time limit is an easy decision, math-wise. Politically, morally, sociologically...these are different questions.

Lastly, you are only including the income tax in this equation. If these are people living downtown, then you also need to add in the increase in property taxes you're bringing in.

Again, not a political position. I'm just saying that if we are going to look at the cost side of any proposal, we have to weigh it against the benefit side.

I am not married to any side on this. If my math is incorrect, I am humbly open to other analysis I may be missing on it

[JBMcB]

Giving a billionaire a $100 million tax break one time in order to collect $14,280,000 will pay for itself in 7-9 years, depending on what interest rates you are using. And that after its paid off, it's $14,280,000 [[and rising) every year after that.

My issue with these kinds of tax breaks is that they aren't a one time deal. After a few years, another tax break is worked out to "keep" the team in the city. Something like this happened in Virginia, where a city paid for a new stadium AND gave the team tax breaks. Once the tax breaks were ended, the team moved to a different city.

Granted, it's a bit of a different situation with Gilbert, as he owns everything around the stadium so it's in his best interest to keep the teams around. That won't mean he won't get another tax break pushed through, though.