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Austinloop
join:2001-08-19
Austin, TX
| reply to Matt
Re: Not tax debt
Matt, I guess that you could say that they are 1.1 million ahead, but given that it is the government, I would look at it as 1.1 million less in the hole, so the taxpayers, in theory, get a 1.1 million break on their taxes, think I will hide and wait on that one.
Just semantics, really. | |
Matt
Take me down to the paradise city
Premium
join:2003-07-20
Jamestown, NC
 ·North State Commun..
| reply to soothsayer15
said by soothsayer15  :said by Matt :The main argument of most anti-muni pundits is that if these projects fail, the citizens will be on the hook for a huge tax burden. This is proof that is not the case as they earned a cool $1.1 million off the deal. They didn't turn a profit. If they had they wouldn't be selling it. It costs them $39.5 million to start it. They were on pace to lose $10 million dollars from 2005 to this year, and that's after adding another $1.2 Million in taxes. I can understand muni-broadband when there are no other options or just one competitor, but in a multi-competitor environment it doesn't make business sense. That's what free spending politicians don't understand. The same way they think giving kids computers will automatically make them smarter. Governments don't exist to make a profit. If they do, they must reinvest those profits back for the public good.
The fact they are coming out $1.1 million ahead I think speaks volumes. | |
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