Google, come to Nashville, save a few billion in taxes.
This is a happy day for those fortunate enough to get back a refund and a sad day for those who have to pay additional taxes. Over 160 million people will file taxes this year. Over 95 million of those will be filed electronically. Approximately 115 million will receive refunds totaling more than $275 billion. The average refund is expected to surpass $2,500 nationwide. Combined, as individuals, we will pay more than $1.3 trillion (that’s right) in taxes to the federal government.
This year, Tax Free Day is estimated to be around July 15, 2009. So while today is Tax Day, the real day we should care about is Tax Free Day. Tax Free Day is the day when we stop working for the government and start working for the money we eventually get to keep. If you are fortunate enough to work in Technology and in Tennessee, then Tax Free Day comes a little earlier than in most states. You see, Tennessee is one of those states without an income tax and we have a balanced budget. Often we forget to thank our Governor and Legislature for the great work that they perform in our state.
So how does tax day affect technology? A lot. According to Google’s latest K1 Filing for year ending 2008, it is estimating a tax bill of $1.6 billion. We have become almost oblivious to a billion dollars. I remember when a billion dollars meant something. Oh the 90’s. Of Google’s $1.6B, nearly $500 million is due to the State of California and it is going to get worse.
Do you think Google’s tax bill is bad? Exxon pays nearly $30 Billion a year in taxes. Now, that is a lot of stimulus.
So while many companies face the daunting task of paying a tax bill, you could be enjoying the low cost, low tax, high quality of life in Nashville, Tennessee. Come on down and pay us a visit. Listen to some music and code up some software. We think you will like what you see and you will get to keep a little more money for yourself, your employees and have money leftover to spend on creating the next killer application.
